Cairo: Egypt's economy has shown signs of recovery, achieving a growth rate of 5.3 percent in the first quarter of the fiscal year 2025/2026, exceeding initial expectations. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, announced that the previous fiscal year 2024/2025 concluded with a growth rate of 4.4 percent. She attributed this acceleration to substantial expansion in the industrial sector, along with significant contributions from the tourism and communications and information technology sectors.

According to State Information Service Egypt, Al-Mashat emphasized the tourism sector's record performance in terms of visitor numbers and revenues. She highlighted the diversification of Egypt's growth model, noting that the real economy is experiencing broad-based improvement due to ongoing structural reforms. This progress marks the onset of a genuine recovery phase and sets the stage for a robust economic takeoff.

The minister also addressed the Suez Canal's impact on economic growth, noting its positive contribution in the first quarter of FY2025/2026 after two years of negative impacts. The anticipated return of major global shipping companies is expected to bolster growth indicators in the second quarter of the current fiscal year.

Al-Mashat pointed out that stable canal traffic reduces global shipping costs, easing worldwide inflationary pressures. The canal's central role in international trade and global supply chains sends a positive signal for Egypt and the broader global economy.

Regarding private sector participation, the minister stated that the government aims to improve public investment governance to foster private sector activity. Currently, the private sector accounts for approximately 65 percent of total investments, with a goal to surpass 70 percent by 2030.

She also highlighted the National Structural Reform Program as a crucial component of Egypt's economic reform agenda, focusing on macroeconomic stability, business climate improvements, and support for the green transition and renewable energy. Al-Mashat stressed the program's transparency, noting that its details are publicly available for the first time, defining ministerial responsibilities and timelines to attract domestic and foreign investment.