Egypt Reports Record $13B Budget Surplus Despite Lower Suez Canal Revenues

BY THE ARAB TODAY Aug 18, 2025

Image Credit: Forbes Middle East

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Egypt Reports Record $13B Budget Surplus Despite Lower Suez Canal Revenues

Egypt achieved its largest-ever primary budget surplus in the 2024/25 fiscal year, reaching $13 billion (EGP 629 billion), equal to 3.6% of GDP, the presidency announced on Saturday.

This surplus was 80% higher than the $7.3 billion (EGP 350 billion) recorded in 2023/24, even though the country lost about $3 billion in projected income after Suez Canal revenues dropped 60%.

Finance Minister Ahmed Kouchouk told President Abdel Fattah al-Sisi that the strong results came from higher private investment, manufacturing, exports, and strong growth in tax revenues.

Tax collections rose 35% year-on-year to $46.2 billion (EGP 2.2 trillion), supported by a wider tax base, digital systems, and new ways to settle disputes. Between February and August 2025, the government received over 401,000 requests to settle old tax cases and 650,000 new or revised tax filings, adding $1.6 billion (EGP 77.9 billion).

President Sisi urged officials to keep fiscal discipline, expand private sector partnerships, and focus on cutting debt costs. He also stressed the importance of directing more funds to social programs, healthcare, education, and the “Takaful and Karama” cash support scheme.

Economic Indicators

Inflation: Urban consumer inflation fell to 13.1% in July from 14.4% in June, mainly due to lower food and drink prices. Inflation had previously hit a record 38% in September 2023.
Interest Rates: The Central Bank kept rates unchanged in July after two cuts, saying its stance still supported lower inflation.
Reserves: Foreign currency reserves rose to $49 billion in July, up 0.6% from June and the highest in years.
Jobs: The unemployment rate dropped to 6.1% in Q2 2025, down from 6.3% in Q1, showing more people found jobs.