Egypt’s economy recorded a 5% growth rate in the fourth quarter (Q4) of FY 2024/2025, pushing the annual growth rate to 4.4%, according to data released today by the Ministry of Planning, Economic Development, and International Cooperation. This marks the highest quarterly growth rate in three years, driven by strong rebounds in tourism, non-oil manufacturing, and ICT sectors.
The Q4 figure represents a sharp improvement compared to the same period last year, which recorded a modest 2.4% growth. The full-year growth of 4.4% also exceeded the government’s target of 4.2%.
A Resilient Economic Overview
The Ministry highlighted that Egypt’s economy showed strong resilience in the face of global headwinds and regional geopolitical tensions. The recovery was underpinned by the government’s continued commitment to macroeconomic stability, public investment governance, and advancing the National Structural Reform Program, which aims to boost private sector-led growth.
Growth Rates Across Sectors
The quarterly growth rate recorded in the fourth quarter of fiscal year 24/2025 was notably driven by expansions across several key sectors. Tourism grew impressively by 19.3%, while non-oil manufacturing followed closely with an 18.8% increase. The communications and information technology sector also posted strong growth of 14.6%, alongside financial intermediation, which expanded by 10.8%. Additional sectors, including insurance, electricity, wholesale and retail trade, and construction, contributed positively, supporting the overall economic expansion during this period.
Looking at the fiscal year as a whole, many sectors demonstrated robust growth. Tourism, encompassing restaurants and hotels, led with an annual growth rate of approximately 17.3%. Non-oil manufacturing maintained a strong performance with 14.7% growth, while the communications and information technology sector also achieved significant gains, growing by 13.8%. This broad-based recovery reflects the diverse nature of Egypt’s economic momentum and underscores the country’s shift toward higher-productivity and export-oriented industries.
Non-oil manufacturing, in particular, showed remarkable resilience, rebounding from contraction in previous years to record substantial growth. Industrial output surged, as evidenced by the Industrial Production Index, while exports of finished goods increased by 12.8% in the fourth quarter. Key export categories such as miscellaneous edible preparations (31.1%), ready-made garments (29.2%), and perfumes and cosmetics (52.7%) experienced substantial gains. These trends highlight the sector’s adaptability and the successful implementation of strategies to enhance competitiveness in global markets.
This positive performance aligns with the government’s strategic vision outlined in “Egypt’s Narrative for Economic Development: Reforms for Growth, Jobs, and Resilience.” The government’s focus on infrastructure investments has laid a strong foundation to support manufacturing and investment, emphasizing sectors with higher export potential to drive sustainable and inclusive growth.
Despite these successes, some sectors faced challenges due to regional geopolitical tensions. Activity in the Suez Canal contracted by approximately 52% on an annual basis for the fiscal year, including a 5.5% decline in the fourth quarter. However, this represented a notable improvement compared to the 68.2% contraction in the same quarter of the previous year. The decline was primarily due to fewer and lighter vessels transiting the Canal, prompting the Suez Canal Authority to introduce incentive packages and reduce transit fees to mitigate the impact.
The extractive sector also contracted by nearly 9% during the fiscal year, driven by declines in crude oil and natural gas activities of 7.5% and 19.1%, respectively. Encouragingly, the rate of contraction eased in the fourth quarter to 7.4%, supported by resumed development work in natural gas fields located in the Mediterranean, Gulf of Suez, and other reserves.
From an expenditure perspective, investment and inventories played an increasingly positive role in economic growth. The contribution of these components improved significantly, shifting from a negative impact of -0.94 percentage points in the fourth quarter of 23/2024 to a positive contribution of 4.74 percentage points in the corresponding quarter of 24/2025. This shift reflects renewed confidence in the domestic investment climate and signals the growing importance of capital formation as a driver of economic expansion.
Total implemented investments at constant prices reached approximately EGP 1.23 trillion during fiscal year 24/2025, marking a slight increase over the previous year. More importantly, there was a notable shift in investment composition: the share of public investment declined from 51.2% in 23/2024 to 43.3% in 24/2025, while private investment rose to 47.5%, the highest level in five years. This transition illustrates the government’s efforts to enhance the efficiency of public investments and strengthen the private sector’s role as the primary engine of economic activity, thereby improving overall resource allocation and competitiveness.
