The rise of economic growth under a liberalized economy that is based on market mechanisms is considered the most distinguished feature of the Egyptian economy in the framework of a developmental strategy whose core is interaction of the power of demand and supply together with paving the way for the private sector to engage strongly in the various economic activities.

Results of the economic and financial performance indicated a great improvement during FY 2006/2007 and first quarter of FY 2007/2008. Egypt's economy achieved a growth rate of 7.1% which is the highest growth rate since ten years where Gross Domestic Product (GDP) with production factors cost increased to reach LE 684.4 billion.

2007 witnessed the increase of public revenues and grants by 19.1% to reach LE 180.2 billion where incomes of tax increased by nearly 16.9 per cent to reach LE 114.3 billion. Non-tax incomes increased by 23.2% to reach LE 65.9 billion while the income tax proceeds in FY 2006/2007 reached 58.5%, i.e. an increase of 21.3% as compared to the previous year. Also, proceeds of sale tax increased by 13.7% to reach LE 39.4 billion while customs proceeds increased by 7.4% to reach LE 10.4 billion due to increase of imports. Spending on wages and salaries increased by 11.6% to reach LE 52.1 billion while the item of subsidized, grants and social advantages increased to LE 58.4 billion. Deficit dropped from 9.2% to 7.5% of GDP.

The state started in the reform of pensions system and application of partnership between the government and private sector in carrying out the development projects taking into account that many institutional and administrative reforms were implemented to guarantee the reform sustainability.

In this context, report of the International Monetary Fund in 2006 hailed Egypt's achievements in economic reform as regards the increase in growth rate to about 5.8 percent and inflation decrease to about 4 percent. Furthermore, contributions of the leading sectors have helped scoring rates higher than the economic growth as the energy, transportation, tourism sectors and some service activities have achieved high growth rates.

Sectors of industry, transport, communications and tourism scored higher rates of growth. Contribution of the spinning and weaving sector to the GDP hits 31 per cent, chemical industries 26 percent, processing industries 18 per cent, transport, communications, Suez Canal 14.1 per cent and tourism 6 per cent.