Egypt’s Economy Grows 4.8% in Third Quarter – Best in 3 Years

BY THE ARAB TODAY Jul 01, 2025

Egypt’s Economy Grows 4.8% in Third Quarter – Best in 3 Years
Image Credit: Forbes Middle East

Egypt’s Economy Grows 4.8% in Third Quarter – Best in 3 Years

Egypt’s economy grew by 4.8% in the third quarter of the 2024–25 financial year compared to the same time last year. This is the highest quarterly growth in three years, mainly due to strong performance in tourism and non-oil industries.

Signs of Recovery

The economy grew much faster than the 2.2% growth seen in the same quarter last year. As a result, Egypt’s average growth for the first nine months of the year reached about 4.2%, up from 2.4% last year, according to the Ministry of Planning and Economic Development.

This shows that the economy is recovering steadily, even though global conditions remain uncertain.

Key sectors that helped drive this growth include non-oil manufacturing, tourism (especially restaurants and hotels), and information technology. However, some areas like the Suez Canal and the oil extraction sector saw declines.

Exports helped boost growth too. Net exports added about 2.7% to GDP growth, thanks to a 54.4% rise in exports and a smaller 18.7% rise in imports.

Private Investment Increases

Private investment grew by 24.2% compared to last year. For the third quarter in a row, private investment was higher than public investment, making up 62.8% of total investments.

However, public investment dropped sharply—by 45.6%—pulling overall growth down by 2.44 percentage points. Public investment now makes up only 37.2%, showing the government’s shift to reduce spending and encourage private investment.

The ministry also noted that industrial activity is improving. Industrial production (excluding oil and gas) grew by 16% in the third quarter, after shrinking 4% during the same period last year.

Major growth came from industries like cars (93%), ready-made clothes (58%), drinks (34%), paper (20%), and textiles (17%).

Future Outlook

The ministry said early signs for the rest of the financial year look positive. Economic growth is expected to go above 4%, driven by rising private investments, stronger industry performance, and good results in the first nine months.

Published: 1st July 2025

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