The Egyptian economy posted a quarterly growth of 4.77% in the third quarter of the fiscal year 2024/2025, marking its highest level in three years. This performance, announced on June 30 by the Ministry of Planning, Economic Development, and International Cooperation, contrasts sharply with the rate of 2.2% recorded at the same period last year.
Over the first nine months of the fiscal year, the average growth stands at 4.2%, compared to 2.4% a year earlier, confirming a strong recovery in activity despite a still uncertain global economic context.
According to the Minister of Planning, Dr. Rania Al-Mashat, this progress reflects the effectiveness of the economic and structural reforms undertaken, as well as efforts towards a competitive economy focused on the development of the private sector, national production, and exports.
This momentum is based on the strong performances of several key sectors, including non-oil manufacturing industry (+16%), tourism (especially catering and hospitality) (+23%), supported by the arrival of 4 million visitors, information and communication technologies (+14.7%), as well as insurance, financial brokerage, electricity, and construction.
The industry has also experienced a strong recovery, with a 16.03% increase in the industrial production index (excluding oil), driven by spectacular increases in automobiles (+93%), ready-to-wear clothing (+58%), and beverages (+34%).
Some sectors, on the other hand, have recorded significant declines. Activity in the Suez Canal dropped by 23.1% in the third quarter, after a 51.6% decrease last year, with revenues falling to $900 million in the fourth quarter, compared to $1.1 billion a year earlier. The extractive sector also declined by 10.38%, due to the decline in oil and gas production.
Net exports have significantly contributed to growth (+2.7 points), driven by a surge in exports (+54.4%) while imports have increased more moderately (+18.7%).
Private investment has also stood out, showing an annual growth of 24.2%, representing nearly 63% of total investments, while public investment has dropped by 45.6%.
Despite international headwinds, Egypt seems well on track to exceed its annual growth target of 4%, thanks to industrial revitalization and a resurgence of private investments.
