The performance lifted full-year GDP growth to 4.4 percent, compared to 2.4 percent in FY2023/2024, surpassing earlier projections and the government’s 4.2 percent target.
Planning Minister Rania Al-Mashat stated that the rebound reflected the resilience of Egypt’s economy, despite external shocks, and was supported by reforms under the National Structural Reform Programme.
The programme has improved public investment governance, boosted competitiveness, and expanded private sector participation.
Sectoral performance
Growth in 4Q was driven mainly by non-oil manufacturing, tourism, and the communications and IT sector.
Non-oil manufacturing grew by 18.8 percent in 4Q, lifting its annual growth to 14.7 percent, ending a two-year contractionary phase.
The Industrial Production Index recorded double-digit increases in several industries, including motor vehicles (126 percent), pharmaceuticals (52 percent), and ready-made garments (41 percent).
Tourism also performed strongly, expanding 19.3 percent in 4Q and 17.3 percent annually, buoyed by infrastructure upgrades and marketing strategies that helped Egypt attract over 17 million tourists.
The ICT sector grew by 14.6 percent in 4Q and 13.8 percent annually, supported by investment in digital infrastructure and the rollout of 5G networks.
Other sectors recording solid growth included financial intermediation (10.8 percent in 4Q), transport and storage, insurance, electricity, wholesale and retail trade, and construction.
Investment shifts
On the expenditure side, investment and inventories contributed positively to growth in 4Q, reversing their negative impact a year earlier.
Data showed a notable structural shift in investment: public investment fell to 43.3 percent of the total in FY2024/2025, down from 51.2 percent a year earlier, while private investment rose to 47.5 percent, the highest share in five years.
Challenges remain
Despite the upbeat results, some sectors continued to struggle.
Activity in the Suez Canal contracted by 52 percent over the fiscal year, reflecting regional geopolitical tensions and a sharp fall in vessel numbers and tonnage, though the pace of decline eased in 4Q.
The extractive sector also shrank by nine percent during the year due to lower oil and gas output, though the rate of contraction slowed in 4Q as new field development resumed.
Meanwhile, Egypt’s foreign trade expanded, with exports of goods and services rising 23.7 percent to EGP 1.7 trillion in FY2024/2025, while imports jumped 29.2 percent to EGP 2.3 trillion.
Minister Al-Mashat emphasized that Egypt’s growth outperformed the projections of international institutions, despite global headwinds.
She underlined that reforms remain focused on sustaining macroeconomic stability, enhancing competitiveness, and promoting the private sector as the main driver of long-term growth.
Egypt has recently launched its new Narrative for Economic Development, outlining a roadmap for the economy through 2030. The government aims to reach seven percent real GDP growth by 2030 and reduce debt by $1-2 billion annually.
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