The Egyptian government has announced robust economic growth and unveiled a new social protection package worth approximately $830 million to support households.
Egypt’s economy grew by 5.3% in the second quarter of the current fiscal year — its strongest performance since the third quarter of fiscal year 2021-22 — Prime Minister Mostafa Madbouly announced on Tuesday.
The figures were presented at a meeting held in the New Administrative Capital with the chairs of the standing committees of the House of Representatives, focused on the economic outlook and the draft 2026-27 budget.
On the occasion, the prime minister unveiled a new social protection plan worth 40 billion Egyptian pounds (approximately $830 million), to be funded from budget surpluses. Of that envelope, 15 billion pounds (roughly $310 million) will be channeled into accelerating the national “Haya Karima” (Decent Life) initiative — a flagship programme aimed at improving living conditions for more than 60 million citizens in rural areas through targeted investments in infrastructure, public services and local development.
Madbouly acknowledged that Egypt is navigating a “delicate period” shaped by an unstable regional environment, and called for close coordination between the executive and legislative branches. The meeting took place against a backdrop of military escalation across the Middle East and heightened risks of a broader conflict, with potential economic and security ripple effects across the region. The prime minister stressed the need to strengthen state resilience in the face of these uncertainties.
On the fiscal side, the government is finalizing the budget bill for fiscal year 2026-27, which is expected to rest on three main pillars: reinforcing budgetary discipline, improving public debt indicators and deepening partnerships with the private sector. The executive is also seeking to carve out additional fiscal space to fund social programs, human development and improvements to living standards.
In response to regional tensions, several crisis monitoring units have been activated to track developments in real time. According to the prime minister, measures have been taken to secure strategic food reserves as well as oil and natural gas supplies for the national electricity grid. Authorities are also closely monitoring the potential impact on air navigation and the safety of Egyptian communities living in neighboring countries.
MK/AK/te/Sf/lb/gik/APA