Egypt's economy grew over 5% in the first quarter of the current fiscal year, leading to coordination with the EU on future development grants. Planning Minister Rania Al-Mashat met EU Ambassador Angelina Eichhorst to discuss reforms and funding.
Planning Minister Rania Al-Mashat announced that Egypt's economic growth rate exceeded 5% during the first quarter of the current fiscal year. This came after the disbursement of a €1 billion tranche in January 2026 under the European Union's Macro-Financial Assistance (MFA) programme. In a meeting with EU Ambassador Angelina Eichhorst, Al-Mashat confirmed that the ministry is coordinating with national authorities to implement the required reforms for the second and third tranches, scheduled for later in 2026.
Al-Mashat described the 109 policy measures and procedures under the MFA as a "central part of the national structural reform programme." She called the recent funding an "international testimony of confidence" in the state's implemented structural reforms and a reflection of the strategic relationship between Egypt and the EU.
The minister noted that the growth rate reflects increased contributions from productive sectors, led by industry, telecommunications, information technology, and tourism. Indicators for private investment and exports have also improved, demonstrating the success of policies aimed at sustainable and inclusive growth while enhancing the economy's resilience to regional and international shocks.
The discussions focused on the economic pillar of the Egypt-EU strategic and comprehensive partnership, including priorities for development grants in 2026-2027. The officials also addressed expanding innovative and mixed financing mechanisms for domestic and foreign private sectors. Al-Mashat reviewed the "National Narrative for Comprehensive Development," which frames the state's efforts to promote sustainable growth through human development investment, structural reforms, and an increased private sector role. It also seeks to improve public investment efficiency and link planning with financing and monitoring. Al-Mashat concluded by stating the government's intent to build on current results to support sustainable development and mutual confidence in the economic reform path.