Egypt’s economy demonstrated signs of resilience in the fiscal year 2023/2024, despite facing several challenges. While the overall GDP growth rate slowed down compared to the previous year, key sectors, including manufacturing and services, showed positive momentum.
The country’s gross domestic product (GDP) expanded by 2.4% in the last quarter of FY2023/2024, resulting in an annual growth rate of 2.4%. This was a slight decrease from the 3.8% growth observed in FY2022/2023.
One bright spot was the manufacturing sector. The Purchasing Managers’ Index (PMI) rose to 50.4 points in August 2024, indicating expansion for the first time since November 2020. This was primarily driven by increased manufacturing activity.
However, the Suez Canal faced significant challenges, with its revenue contracting by 30% in FY2023/2024 compared to the previous year.
The non-petroleum manufacturing sector, which contributes 11.4% to the GDP, experienced a decline of 5.2% over the year. This was due to economic challenges and shortages of raw materials. However, after undergoing reforms in March 2024, the sector rebounded with 4.7% growth in the last quarter.
Several sectors, including communications and information technology, tourism, wholesale and retail trade, and construction, demonstrated resilience and recorded positive growth throughout the year.
Looking ahead, international institutions are forecasting Egypt’s GDP to grow by 4% in FY2024/2025, suggesting a brighter outlook for the country’s economy.
