This figure is nearly double the 2.2 percent recorded in the same quarter of FY2023/2024.
This pushes the average growth rate for the first nine months of FY2024/2025 to 4.2 percent, up from 2.4 percent in the corresponding period of FY2023/2024.
Minister of Planning Rania Al-Mashat said this robust performance reflects the growing resilience of the Egyptian economy, particularly amid mounting global geopolitical and financial volatility.
The third-quarter GDP surge was primarily driven by sustained progress in the government’s structural reform agenda under the National Structural Reform Programme, which focuses on macroeconomic stability, efficient public investment governance, competitiveness, and private sector empowerment.
Key drivers of growth
Among the key sectors driving Egypt’s economic growth are non-oil manufacturing, tourism (including hotels and restaurants), and telecommunications.
The non-oil manufacturing sector grew by 16 percent, marking its fourth consecutive quarter of positive growth and contributing 1.9 percent to the overall GDP growth. This follows a contraction of nearly four percent in the same quarter of FY2023/2024.
Tourism also continued its strong rebound, growing by 23 percent year-on-year in 3Q. The sector hosted four million tourists during that quarter, generating 41 million tourist nights.
Moreover, the telecommunications sector registered a solid growth rate of 14.7 percent.
Other supportive sectors like financial intermediation (17.3 percent), insurance (7.7 percent), electricity (5.8 percent), and construction (3.1 percent) added further momentum to economic recovery.
Additionally, Egypt’s industrial production index (except petroleum products) rose by 16 percent. High-growth industries included motor vehicles (93 percent), ready-made garments (58 percent), beverages (34 percent), paper (20 percent), and textiles (17 percent).
Export-led expansion, private investment boom
On the expenditure side, net exports made a significant contribution to GDP growth, adding 2.7 percent.
Exports surged by 54.4 percent, far outpacing the 18.7 percent growth in imports.
Industrial exports of finished goods rose by 12.7 percent, driven by increased competitiveness and demand.
The ready-made garments industry was a standout performer, growing by over 23.7 percent in the third quarter, a testament to Egypt’s capacity to adapt to shifts in global trade dynamics.
Private investment also grew impressively by 24.2 percent year-on-year at constant prices, accounting for 62.8 percent of total investment (excluding inventory) and outpacing public investment for the third straight quarter.
This reflects investor confidence and the impact of pro-business policies aimed at harnessing the potential of the private sector.
However, the steep 45.6 percent decline in public investment, which now accounts for only 37.2 percent of implemented investments, led to a negative contribution from overall investment, subtracting approximately 2.44 percent from GDP growth.
Declining sectors and global headwinds
Despite the upbeat overall outlook, some sectors continued to contract.
The Suez Canal, affected by regional geopolitical tensions and lower shipping traffic, saw a 23.1 percent year-on-year decline in 3Q, though this was a notable improvement from the 51.6 percent contraction a year earlier.
Meanwhile, the extractive industries sector continued to face pressure. Petroleum activity contracted by 9.5 percent, and natural gas extraction declined by 20.5 percent.
However, the government expects upcoming field developments and discoveries to reverse this trend.
Structural reform and outlook
Minister Al-Mashat noted that the ongoing reform efforts are integral to Egypt’s development vision, especially the shift toward a competitive, export-oriented, private sector-led economy.
These efforts are also reflected in the broader Economic and Social Development Plan for FY2025/2026, which the parliament approved in June 2025.
The new plan projects a 4.5 percent GDP growth rate for the next fiscal year, despite ongoing global uncertainties.
It maintains a cap on public investment at EGP 1.154 trillion and emphasizes redirecting government spending toward human capital development. Approximately 47 percent of treasury-funded public investments are allocated to education, health, and social services.
Recovery confirmed by indicators
High-frequency indicators continue to point to a broad-based recovery. Egypt’s Purchasing Managers’ Index (PMI) reached 50.7 in January 2025, its highest in over four years.
Though it dipped slightly to 49.2 in March, the index remained near the neutral mark, indicating relative stability in non-oil private sector activity.
Preliminary data suggest that Egypt’s full-year GDP growth in FY2024/2025 will exceed the four percent target, driven by solid non-oil manufacturing, strong export performance, and a recovery in private sector activity.
This strong momentum positions the country for further gains in FY2025/2026.
Impact of geopolitical risks contained
The recent outbreak of war between Israel and Iran on 13 June initially raised concerns about broader regional volatility.
However, the economic impact on Egypt’s key markets has so far remained limited.
Oil and commodity markets have shown resilience, enabling the government to maintain its FY2025/2026 targets.
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