Egypt’s Finance Minister Ahmed Kouchouk announced that the country achieved its highest primary surplus of GDP, recorded at 3.1 percent, during the period from July to April. He emphasized that the debt-to-GDP ratio has decreased, despite the challenge of rising interest rates, and that the government is committed to sustaining this positive trend in the future. The Egyptian government aims to create adequate fiscal space to enhance spending on health, education, and social and economic development.
In a high-level ministerial session aimed at bolstering Egyptian-American investment and trade relations during the 2025 U.S.-Egypt Policy Leaders Forum, he mentioned that there is strong coordination and alignment among various economic policy areas and reforms to ensure the competitiveness of the Egyptian economy.
The minister elaborated on how the country is beginning to experience the benefits of its economic reforms, showcasing robust indicators of economic and financial performance over the last ten months. He remarked that the Egyptian economy is now capable of achieving gradual and sustainable growth, significantly supported by increased investment rates. He indicated that the government is implementing economic policies designed to empower the private sector and boost its contribution to economic activity, projecting that the private sector’s share of total investments will rise to 60 percent between July and December 2024.
Read more: IMF raises Egypt’s growth forecast to 3.8 percent for 2025, 4.3 percent next year
Tax incentives for business growth
Kouchouk remarked that efforts are underway to manage the state’s public finances with a careful balance between maintaining financial discipline and promoting economic activity. He highlighted the initiation of more effective initiatives and programs to support industry, agriculture, exports, and tourism, all aimed at enhancing the competitiveness of the Egyptian economy.
He shared that the social protection system is evolving with more efficient programs that target the most vulnerable populations. In the latest protection package, the focus has been on direct cash transfers, addressing critical cases, and increasing state-funded medical allocations.
Egypt’s Finance Minister outlined that the first package of tax incentives is designed to build trust, partnership, and certainty within the business community, and that positive results from these initiatives will soon be announced. He expressed pride in the voluntary inclusion of thousands of new taxpayers in the tax system, allowing them to benefit from tangible incentives.
