Egypt Posts Strongest Quarterly Growth in Three Years at 5%

Egypt’s economy grew 5% in the fourth quarter of FY2024/2025, which ended in June 2025, up from 2.4% in the same quarter a year earlier, marking the strongest quarterly pace in three years. The performance took full year growth to 4.4%, compared to 2.4% in FY2023/2024, and above the government’s 4.2% target, the Ministry of Planning, Economic Development, and International Cooperation said. Growth in the fourth quarter was led by non oil manufacturing, tourism, and the information and communications technology sector. Non oil manufacturing expanded 18.8% in the quarter, bringing annual growth to 14.7% after two years of contraction. The Industrial Production Index recorded double digit increases in several industries, including motor vehicles at 126%, pharmaceuticals at 52%, and ready made garments at 41%. Tourism expanded 19.3% in the quarter and 17.3% over the year, with Egypt receiving over 17 million tourists. Information and communications technology grew 14.6% in the quarter and 13.8% for the year. Other sectors with quarterly gains included financial intermediation at 10.8%, transport and storage, insurance, electricity, wholesale and retail trade, and construction. On the expenditure side, investment and inventories contributed positively to fourth quarter growth after a negative contribution a year earlier. There was a structural shift in investment composition across the fiscal year, with the share of public investment falling to 43.3% from 51.2% in the previous year, while private investment rose to 47.5%, the highest share in five years. Several sectors continued to face pressures during FY2024/2025. Activity in the Suez Canal contracted by 52% over the fiscal year, reflecting regional geopolitical tensions and a decline in vessel numbers and tonnage, though the pace of contraction eased in the fourth quarter. The extractive sector shrank by 9% for the year amid lower oil and gas output, with the rate of contraction slowing in the final quarter as some field development resumed. Foreign trade expanded, with exports of goods and services rising 23.7% to EGP 1.7 trillion and imports up 29.2% to EGP 2.3 trillion. The government outlined a new Narrative for Economic Development as a roadmap through 2030, aiming to reach 7% real GDP growth by 2030 and to reduce debt by USD 1 billion to USD 2 billion annually.