A farmer collects the pepper crop, in el-Fashn in Egypt's Beni Suef governorate. AFP
The new figures were published Tuesday in the Bank’s Economic Update for the Middle East, North Africa, Afghanistan and Pakistan (MENAAP), titled Jobs and Women: Untapped Talent, Unrealized Growth.
According to the report, Egypt’s economy is expected to see modest recovery next year, supported by rebounds in agriculture and tourism, along with steady private consumption and investment inflows.
Oil-importing countries such as Egypt are projected to benefit from stabilizing global conditions, though risks remain from shifting trade policies and ongoing regional conflicts.
Red Sea disruptions weighs on revenues
The report warned that Red Sea insecurity continues to threaten Egypt’s fiscal stability, as disrupted shipping routes have sharply reduced Suez Canal revenues.
Monthly losses are estimated at $800 million, with total shortfalls projected to reach $7 billion by the end of 2024. The decline has deepened Egypt’s foreign-exchange pressures and added fiscal strain.
Despite these challenges, Egypt’s growth showed signs of improvement in FY 2024/25, which ends in June 2025. Real GDP grew 5 percent in the fourth quarter, up from 2.4 percent a year earlier, the country’s strongest quarterly performance in three years.
Call to unlock women's economic potential
The World Bank also urged Egypt and other regional economies to address the barriers that prevent women from entering the workforce. The report noted that only one in five women in Egypt, Jordan, and Pakistan participates in the labour market, the lowest rate globally, despite major advances in education and skills.
Removing those barriers, it said, could raise GDP per capita by 20 to 30 percent.
“A vibrant private sector that creates jobs and transforms aspirations is key to real progress,” said Ousmane Dione, the World Bank’s Vice President for the MENAAP region.
Chief Economist Roberta Gatti added that boosting women’s participation “could translate into immense economic gains for Egypt and its peers.”
The report draws on analysis of social norms, legal frameworks, and business practices, concluding that no region stands to gain more from gender-inclusive reforms.
Regional outlook improves modestly
Across the MENAAP region, growth is expected to reach 2.8 percent in 2025 and 3.3 percent in 2026. Gulf Cooperation Council (GCC) economies are set to benefit from the gradual phase-out of voluntary oil-production cuts and continued expansion in non-oil sectors.
Oil-importing nations, including Egypt, may also gain from higher private spending and investment, while oil-exporting developing countries are projected to face slower growth due to conflict and reduced output.
“I urge bold action, not partial measures. To unlock the full potential of women in the region, we must tackle every barrier to their inclusion with comprehensive measures. A vibrant private sector that creates jobs and transforms aspirations is key to real progress,” Dione urged governments to act decisively.
“Increasing female labour force participation can translate into immense economic gains,” Gatti added. “Removing barriers that prevent women from accessing jobs could boost GDP per capita by 20 to 30 percent in economies like Egypt, Jordan, and Pakistan.”
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