Egypt’s financial system has demonstrated restoration by recording a GDP development price of 4.77% within the third quarter of the fiscal 12 months 2024/2025 as reported by the Ministry of Planning, Financial Growth and Worldwide Cooperation on Monday 30 June.
This determine marks the very best quarterly development in three years.
The sturdy efficiency has lifted the typical development price for the primary 9 months of the present fiscal 12 months to 4.2 p.c, in comparison with simply 2.4 p.c throughout the identical interval final 12 months.
Key sectors driving this development include non-oil manufacturing, tourism, and telecommunications.
The non-oil manufacturing sector noticed a growth rate of 16 p.c, marking a notable turnaround from earlier contractions.
This sector’s restoration is attributed to elevated demand each domestically and internationally, significantly in industries like motor autos and ready-made clothes, which skilled exceptional features.
Tourism, one other important element of Egypt’s financial system, surged by 23 p.c, welcoming 4 million guests throughout the quarter.
The telecommunications sector additionally contributed considerably to the financial upturn, with a development price of 14.7 p.c.
The ready-made clothes business stood out with a development price exceeding 23 p.c, benefiting from rising worldwide demand.
Personal funding has additionally accelerated, rising by 24.2 p.c year-on-year. It now accounts for 62.8 p.c of complete executed investments.
Nonetheless, the financial panorama shouldn’t be with out its challenges. Regardless of the general constructive outlook, some sectors are nonetheless going through vital difficulties.
The Suez Canal, a vital artery for world commerce, reported a 23.1 p.c decline in exercise, affected by geopolitical tensions which have diminished vessel site visitors.
The Pink Sea has grow to be increasingly dangerous for delivery as a result of Houthi assaults on industrial vessels, which have escalated since late 2023 in response to the battle on Gaza. Main delivery corporations at the moment are rerouting their vessels across the Cape of Good Hope, avoiding the Suez Canal to make sure the security of their crews and cargo.
The state of affairs worsened with the outbreak of open conflict between Israel and Iran in June 2025, elevating fears of broader regional instability. Ongoing unrest in Sudan additional worsens safety issues, resulting in elevated naval operations and better insurance coverage premiums for ships, which discourages site visitors by means of these important maritime corridors.
Moreover, the extractive industries, significantly oil and pure gasoline, proceed to wrestle. Oil output contracted by 9.5 p.c and pure gasoline extraction declined by 20.5 p.c.
Wanting forward, Egypt’s authorities stays optimistic about sustaining this development momentum based on sources.
The parliament approved on 18 June the Financial and Social Growth Plan for FY 2025/2026, concentrating on a GDP development price of 4.5 p.c.
This plan maintains a cap on public investments whereas emphasizing the necessity to redirect spending towards human capital improvement, significantly in well being and training. Roughly 47 p.c of public treasury investments shall be allocated to those vital sectors.