Key Messages from the Minister of Planning, Economic Development, and International Cooperation during her Meetings with Regional and International Media at the WEF, Davos:

 

* Macroeconomic stability, structural reforms, and financing for development are key pillars for attracting investment to drive growth and economic development.

 

 Enhancing economic resilience, improving the business environment, increasing competitiveness, and promoting green investments are key aspects of the National Structural Reform Program.

 

Close monitoring with national entities to ensure adherence to the public investment ceiling and governance of spending to empower the private sector and increase investments.

 

The Egyptian economy achieved a 3.5% growth in Q1 of 2024/2025 despite regional tensions and global challenges.

 

We expect the economy to achieve 4% growth by the end of the fiscal year, supported by the manufacturing, extractive industries, information technology, and tourism sectors.

 

Achieving lasting peace in Palestine and reducing tensions in the Red Sea will enhance the activities of the Suez Canal.

 

 $9.5 billion in concessional financing in 2024, with private sector financing surpassing government financing for the first time.

 

 Inflation is expected to decrease in February due to the base year effect, thus lowering production costs.

 

Egypt and the European Union continue to strengthen their strategic partnership to support structural reforms and encourage private sector investments.

 

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, emphasized that macroeconomic stability, structural reforms, and financing for development are fundamental pillars for attracting investment to drive economic growth and development.

 

H.E. Minister Al-Mashat explained that the government is working to enhance economic resilience, improve the business environment, increase competitiveness, and promote green investments through the National Structural Reform Program.

 

This was discussed during several media interviews H.E. Dr. Al-Mashat conducted with regional and international TV channels on the sidelines of her participation in the World Economic Forum 2025, held in Davos, Switzerland, under the theme "Collaboration for the Intelligent Age," from January 20 to 24, with broad participation from heads of state, government leaders, decision-makers, and representatives of international organizations.

 

H.E. Minister Al-Mashat presented key insights on the developments of the Egyptian economy, its response to global challenges, and the policies expected to be followed by the United States under the new president, Donald Trump.

 

H.E. Dr. Al-Mashat noted that markets would be affected by the decisions and statements of the new U.S. president, though this is contingent on delicate adjustments due to its impact on inflation and interest rates for the American public. She also mentioned that developing and emerging countries, in particular, would be affected by U.S. movements amid the difficulties in attracting investments.

 

Regarding inflation rates in Egypt, H.E. Minister Al-Mashat  explained that inflation is expected to decrease in February due to the base year effect, which will lower production costs and serve as a positive indicator.

 

H.E. Dr. Al-Mashat also highlighted other positive economic growth indicators in the last quarter of the previous fiscal year and the first quarter of the current fiscal year. These included the growth of non-petroleum manufacturing industries, the government's success in overcoming supply chain bottlenecks, increased investment in these industries, and a rise in exports.

 

H.E. Dr. Al-Mashat pointed out that the completion of the fourth review with the International Monetary Fund was an important indicator that addressed concerns surrounding the Egyptian economy.

 

H.E. Minister Al-Mashat also highlighted the growth of the tourism sector, with increased income from tourism and more tourist nights. She mentioned the continued payments from foreign companies in the oil and extractive industries, which would drive exploration activities and positively impact both economic growth and foreign revenues. Additionally, there has been notable growth in the industrial sector, reflecting an increase in both private and foreign investments and exports.

 

The Minister affirmed that the Egyptian government is focused on restoring macroeconomic stability, which began last March with the implementation of a mix of fiscal and monetary policies that allowed Egypt to rebalance its foreign exchange market. Several crises have been resolved, including the accumulation of goods in ports, which has had a positive effect on GDP, with a growth rate of 3.5% in Q1 of the current fiscal year.

 

H.E. Dr. Al-Mashat  underscored that the tourism sector achieved strong growth in the first quarter despite regional tensions, and that the non-petroleum manufacturing sector continues to grow, accounting for 15% of GDP.

 

H.E.Minister Al-Mashat emphasized that there are many positive indicators surrounding the Egyptian economy despite external challenges. At the same time, she stated that achieving a ceasefire in Gaza would help overcome challenges in the Red Sea and restore Suez Canal activities. She predicted the Egyptian economy would grow by 4% due to developments in the extractive sector, continued growth in tourism, and a calming of tensions in Gaza.

 

H.E. Dr. Al-Mashat stressed that moving towards peace in Gaza is undoubtedly a win for all, and that the ceasefire is a very positive first step that is hoped to become sustainable. She outlined the significance of the reconstruction phase and the need for joint cooperation between regional countries and the international community in this regard. Egypt has made significant efforts since the beginning of the crisis, and with the ceasefire, aid trucks are now moving regularly. Egypt will not hesitate to provide any effort or logistical support to ensure the success of peace efforts and is committed to working with international and regional partners to achieve the required humanitarian and political goals.

 

On the topic of developmental cooperation between Egypt and international partners, H.E. Dr. Al-Mashat underscored the importance of financing for development, especially in light of the compounded challenges and crises affecting countries worldwide in recent years, which have delayed the achievement of sustainable development goals. She emphasized the role of international financing institutions in providing low-cost financing to governments and the private sector.

 

H.E. Dr. Al-Mashat noted that development financing reached $9.5 billion in the past year, with financing for the private sector exceeding government financing for the first time. The private sector received about $4.2 billion, particularly in the sectors of renewable energy, manufacturing, logistics, and port development, which has contributed to economic growth despite the challenges faced by Egypt and other countries.

 

H.E. Minister Al-Mashat also pointed to the Ministry's role in closely monitoring national entities to ensure adherence to the public investment ceiling and spending governance to empower the private sector and increase both local and foreign investments.

 

Regarding the second phase of negotiations under the partnership program with the European Union, H.E. Dr. Al-Mashat explained that the partnership with the EU was elevated in March, with an agreement that includes support for macroeconomic stability and budget deficit financing amounting to €5 billion. This is linked to the National Structural Reform Program. She highlighted that continued implementation of structural reforms would strengthen the stability and resilience of the Egyptian economy in confronting external shocks.