Egypt records strongest economic performance in 3 years with 5% growth in the last quarter

The Ministry of Planning, Economic Development, and International Cooperation in Egypt announced that the national economy continued to record strong performance during the fourth quarter of the fiscal year 2024/2025, achieving a growth rate of 5% compared to 2.4% in the same quarter of the previous fiscal year, the highest quarterly growth rate in three years.

The annual growth rate for the entire fiscal year reached 4.4%, exceeding the official estimates of 4.2%, and significantly higher than the 2.4% recorded in the previous fiscal year. The ministry explained that this recovery reflects the resilience of the Egyptian economy and its ability to absorb external shocks thanks to government policies supporting macroeconomic stability, improving governance of investment spending, and enhancing private sector participation.

The growth in the fourth quarter was driven by strong performance in several key sectors, most notably:

Tourism,

Non-oil manufacturing industries,

Communications and information technology.


The index of non-oil manufacturing recorded a growth of 18.8% in the fourth quarter, compared to 4.7% in the same period of the previous year, driven by an expansion in vehicle production (126%), pharmaceuticals and medicines (52%), and ready-made garments (41%).

In terms of investment, the contribution of investment and inventory to GDP improved, shifting from negative to positive, while private investments recorded their highest level in five years at 47.5%, compared to a decline in the share of public investments to 43.3%.

Conversely, some sectors continued to face challenges, most notably the Suez Canal, which saw its revenues decline by 5.48% in the fourth quarter and 52% over the fiscal year, due to a decrease in maritime traffic. The oil and natural gas sectors also experienced contraction during the year, despite a slight improvement in the last quarter with the resumption of some field development work.