Egypt GDP Growth Accelerates to 3-Year High

Egypt's economy grew by 5.3% in Q1 FY 2025/26, the strongest rate in over three years and well above the 3.5% a year ago, according to preliminary estimates from the planning ministry. The strong performance was attributed to ongoing economic and structural reforms that boosted key sectors like non-oil manufacturing, tourism, and telecommunications. Non-oil manufacturing activity expanded by 14.5% in Q1, with motor vehicles, chemicals, beverages, and furniture up 50%, 44%, 37%, and 34%, respectively. The communications and information technology sector advanced by 14.5%, while financial intermediation rose by 10.2%. At the same time, the tourism sector grew by 13.8%, with nearly 5.1 million tourists visiting the country. Suez Canal activity recorded positive growth of 8.6%, the first increase since Q2 2023/2024 fiscal year. By contrast, the extraction sector contracted 5.3%, reflecting a 6.6% decline in petroleum output and a 10.9% reduction in natural gas production.

Egypt's economy grew by 5% in the fourth quarter of FY 2024/25, marking the fastest pace in three years, compared to 2.4% in the same quarter last year, according to preliminary estimates from the planning ministry. This strong performance lifted full-year growth to about 4.4% in FY 2024/25, surpassing the 4.2% target, with key contributions from tourism (+19.3%) and non-oil manufacturing (+18.8%). The telecommunications and information technology also grew solidly (+14.6%), supported by investments in digital infrastructure and the rollout of 5G technology. Other sectors contributed to the expansion, with financial intermediation (12.2%), transport and storage (7%), insurance (5.6%), electricity (5.3%), social services (4.7%), and construction (4.1%) performing strongly. Conversely, the Suez Canal witnessed a 5.5% contraction, far less than the 68.2% plunge a year ago, reflecting lower numbers of transit ships and reduced cargo volumes. The extraction sector shrank by 7.4%.

Egypt's economy expanded by 4.77% in the third quarter of its FY 2024/25, marking the fastest growth in three years, after a 2.2% rise in the same quarter a year ago, preliminary estimates showed. The manufacturing sector was a major driver, bouncing back with 16.3% growth after contracting 3.9% in the previous year’s quarter. Conversely, oil and natural gas extraction contracted further, shrinking by 10.38%. Additionally, activity in the Suez Canal fell by 23.1%, following a 51.6% drop the prior year.