Egypt reports 5.3% GDP growth as government prepares EGP 40bn social package

2026-03-03 - 16:34

Egypt’s economy recorded a growth rate of 5.3% during the second quarter of the current fiscal year (FY), the highest level since the third quarter of FY 2021/22, Prime Minister Mostafa Madbouly said on Tuesday. Speaking during a meeting with the heads of the House of Representatives’ standing committees in the New Administrative Capital, Madbouly announced that the government has mobilised a new EGP 40bn social protection package. The package, funded through financial surpluses, includes EGP 15bn specifically designated to accelerate the “Haya Karima” (Decent Life) initiative, which aims to improve living conditions for more than 60 million citizens in rural areas. Madbouly stated that Egypt is navigating a “delicate period” that requires total integration between the legislative and executive branches. He noted that the meeting coincided with regional military escalation and the rising risk of a broader conflict, necessitating national alignment to bolster the state’s resilience against potential economic and security repercussions. The prime minister outlined the pillars of the draft budget for the 2026-2027 fiscal year, which focus on deepening partnerships with the business community, maintaining fiscal discipline, and implementing a strategy to improve debt indicators. He added that the government is working to create “fiscal space” dedicated to social protection, human development, and improving living standards. Regarding the regional crisis, Madbouly confirmed that the government has activated crisis rooms to monitor developments in real-time. He said measures have been taken to ensure strategic food reserves remain within safe limits and to guarantee the stability of petroleum reserves and natural gas supplies for the national electricity grid. The Ministry of Foreign Affairs has formed a consular task force to monitor Egyptian communities in affected regional countries, while the Ministry of Civil Aviation is monitoring the impact on air navigation and raising readiness at all airports, according to the prime minister. Addressing domestic market concerns, Madbouly said he has issued directives to ministers and governors to intensify market oversight. “The government will not allow the monopolisation of any commodity,” Madbouly said, adding that the state would intervene with its various mechanisms to protect consumers despite its free-market policy. On the issue of building violations, Madbouly expressed openness to “realistic proposals” to finalise the settlement process. “We want to close this file permanently and solve previous problems, but we will not allow any new violations,” he said. During the meeting, committee heads expressed support for the political leadership’s strategic vision in maintaining national security. They called for continued funding for infrastructure, particularly internal roads, and urged the government to prioritise tourism, civil aviation, and the integration of the pre-university and higher education systems. The representatives also requested enhanced support for people with disabilities and the promotion of micro-projects for low-income families. They further advocated for a mechanism to measure the legislative and social impact of laws and decisions to ensure their effectiveness. Madbouly concluded by reaffirming the government’s commitment to transparency and regular communication with the public through press conferences. He instructed all ministers to attend parliamentary sessions and committee meetings to ensure coordinated state policy and respond to legislative enquiries with “objectivity and transparency.”