{"id":708565,"date":"2026-06-08T00:00:00","date_gmt":"2026-06-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?p=708565"},"modified":"2026-06-08T02:53:57","modified_gmt":"2026-06-08T02:53:57","slug":"govt-lowers-medium-term-economic-growth-target-to-6-8","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2026\/06\/08\/govt-lowers-medium-term-economic-growth-target-to-6-8\/","title":{"rendered":"Gov\u2019t lowers medium-term economic growth target to 6.8%"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Regional wars and economic shocks have forced the government to temper <\/strong><strong>its medium-term economic targets<\/strong>, lowering its growth target to 6.8% by FY 2029\/30, down from a previously targeted 7.5%, according to a government planning document reviewed by EnterpriseAM. The downward revision reflects the toll of Red Sea disruptions, <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/egypt\/2026\/05\/12\/egypt-files-its-reform-credentials-ahead-of-imfs-last-review\/\" style=\"\">falling Suez Canal revenues<\/a>, and global supply chain shocks.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Why it matters:<\/strong> Call it a much-needed reality check that finally shelves the <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/egypt\/2025\/05\/22\/a-look-into-the-governments-economic-targets-for-the-next-four-fiscal-years\/\" style=\"\">optimistic projections of the past<\/a>. The government\u2019s new \u201ccautious-ambitious\u201d scenario is essentially a tacit admission that ongoing regional conflicts and global inflation have made those older, loftier targets impossible to hit.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">The revised numbers<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Growth and income: <\/strong>The government is now targeting real GDP growth of 5.4% in FY 2026\/27, compared to an estimated 5.2% in the current FY. Per capita real GDP is expected to grow by nearly 4% in FY 2026\/27, climbing to 5.4% by the end of the medium-term plan.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Investment and savings: <\/strong>The government plans to gradually expand investment activity, projecting a 35.1% jump in total investments to EGP 4.17 tn in FY 2026\/27, up from an estimated EGP 3.1 tn in the current FY. This figure is expected to rise steadily to EGP 7.2 tn by the end of the medium-term period. This aims to raise the investment-to-GDP ratio from an estimated 14.5% to 17% in FY 2026\/27, eventually reaching 19.6% by FY 2029\/30. Meanwhile, the domestic savings rate is projected to jump from 10.5% to 14.6% by the end of the decade.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>IN CONTEXT-<\/strong> Our gross <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/egypt\/2026\/06\/04\/our-domestic-savings-rate-fell-to-1-2-of-gdp-in-fy-2024-25-from-6-1\/\" style=\"\">domestic savings rate<\/a> collapsed to just 1.2% of GDP in FY 2024\/25, down from 6.1% a year earlier and a fraction of the 20-30% that high-growth emerging markets typically need to fund investment-led growth, veteran banker and EG Bank board member Mohamed Abdel Aal told EnterpriseAM earlier this month. In absolute terms, that\u2019s a fall from EGP 848 bn to EGP 218 bn in a single year.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>FX flows and trade:<\/strong> The strategy targets increasing net foreign direct investment to USD 13 bn in FY 2026\/27 and pushing it to USD 25 bn by FY 2029\/30. The government is also targeting an average annual growth rate of 13.3% for merchandise exports, alongside measures to rationalize imports.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Social targets:<\/strong> The government aims to bring inflation down from approximately 19.9% in FY 2024\/25 to 9.3% in FY 2026\/27 before it settles at 6.9% by FY 2029\/30.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What\u2019s next:<\/strong> The revised framework lands in the Senate today before moving to the House for final review before the end of the month.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ongoing regional conflicts and global economic shocks have forced the government to revise its medium-term economic targets down to 6.8%<\/p>\n","protected":false},"author":1,"featured_media":708566,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7206],"tags":[104,72,348,724],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-708565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-economy","tag-enterpriseam","tag-gdp","tag-monetary-policy","wpautop","entry"],"acf":{"mongo_id":"b165a0a5-5045-4607-8b1f-2fdbec96faf9","order":"6","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/2\/383.jpg","photo_position":"above","homepage_title":"","full_issue_title":"A necessary reality check","related_issue":[708555],"teaser":"Ongoing regional conflicts and global economic shocks have forced the government to revise its medium-term economic targets down to 6.8%"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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