Egyptian Prime Minister Mostafa Madbouly speaks during a press conference. Photo courtesy of Egyptian cabinet.
Speaking at a press conference following a weekly cabinet meeting, Madbouly asserted that genuine economic activities are driving this growth.
In 2022, Egypt faced a significant outflow of an estimated $20 billion in hot money, driven by the Russian-Ukrainian war. This outflow exacerbated the country's foreign currency shortage at the time and contributed to economic instability.
Madbouly pointed to a 22 percent rise in exports, increased tourism revenue, and higher remittances from Egyptians abroad as key factors.
According to the Central Bank of Egypt (CBE), the country's net international foreign reserves (NIRs) increased by $174 million in June, reaching $48.7 billion (the highest level in decades), up from $48.526 billion in May.
Remittances from Egyptians working abroad surged by 69.6 percent year-on-year from July 2024 to May 2025, reaching approximately $32.8 billion.
Madbouly noted that these factors have provided sustainable sources of foreign currency, even amid geopolitical challenges affecting the Suez Canal, Egypt's primary source of foreign currency.
He also pointed to the decline in inflation rates as a positive indicator of the government's economic strategy.
Furthermore, Madbouly explained that lower inflation rates support government and private sector efforts to reduce profit margins on essential goods, which ultimately benefits consumers. The country's inflation rate for July was 13.1 percent, down from 14.4 percent in June.
Moreover, the average inflation rate for the second quarter of 2025 was 15.3 percent, roughly half the 29.4 percent recorded during the same period last year.
This reduction, Madbouly said, demonstrates the success of economic policies aimed at controlling prices and enhancing financial stability.
Politics unaffected by Israel gas deal
Madoulby also addressed the recent controversy surrounding a gas deal with Israel, reiterating that the deal announced by Israeli firm NewMed Energy is an extension of an existing agreement from 2019.
The premier affirmed that the agreement, in place six years ago, "did not and will never" influence Egypt's political decisions or positions on the Palestinian cause. Madbouly's remarks are the first official cabinet-level response since the Israeli firm announced what it called a "landmark deal" on Thursday. The firm said that according to the agreement, 130 billion cubic metres of gas, valued at about $35 billion, will be exported to Egypt through 2040.
Madbouly explained that as part of the deal, Egypt's two liquefaction plants, Edco and Damietta, will be used to process the gas for resale on international markets at a profit, solidifying Egypt's position as a regional hub for energy.
He further noted that the agreement secures gas for Egypt at a price below the global market rate. This strategy, he said, would not only generate additional revenue but also support the growth of gas-based industries within the country.
The extension was signed with Blue Ocean Energy, which buys the gas from Israel's Leviathan reservoir for Egypt.
Gas from Leviathan began flowing to Egypt shortly after production started in January 2020. Under the new terms, it is expected to continue until 2040 or until contracted volumes are met.
Short link: