Cairo: Egypt's Ministry of Planning, Economic Development, and International Cooperation announced that the country's Gross Domestic Product (GDP) grew by approximately 5 percent during the fourth quarter (Q4) of FY 2024/2025, compared to 2.4 percent in the same quarter of the previous year. This growth marks the highest quarterly rate in three years and has raised the annual growth rate for FY 2024/2025 to around 4.4 percent, up from 2.4 percent in the prior fiscal year, surpassing initial projections.
According to State Information Service Egypt, the ministry attributed this economic performance to the resilience of the Egyptian economy amid external shocks. The growth was supported by policies aimed at maintaining macroeconomic stability, improving governance of public investment expenditure, and increasing private sector participation.
Key drivers of growth in Q4 and throughout the fiscal year included tourism, non-oil manufacturing, and communications and information technology. Tourism expanded by 19.3 percent in Q4, achieving an annual growth rate of 17.3 percent. The sector attracted over 17 million tourists, marking a 16.4 percent increase, with total tourist nights rising 16.3 percent to reach 179 million nights. Non-oil manufacturing grew by 18.8 percent in Q4 and 14.7 percent annually, recovering from the previous two years' contraction. Strong industrial production was noted in motor vehicles, pharmaceuticals, and ready-made garments. Communications and information technology expanded by 14.6 percent in Q4 and 13.8 percent for the year, driven by the implementation of Egypt's Digital Strategy 2022-2026.
Other sectors also contributed positively, including financial intermediation, transport and storage, insurance, electricity, social services, and construction. However, the Suez Canal activity contracted by 52 percent annually, though the decline slowed to 5.5 percent in Q4. Extractive industries experienced a nearly 9 percent annual contraction, with oil and natural gas activities both decreasing. The pace of contraction eased in Q4 as development resumed in certain gas fields.
The industrial rebound coincided with a notable improvement in exports. Exports of manufactured goods rose by 12.8 percent in Q4, supported by increases in various sectors. Overall, exports of goods and services increased from LE 1.4 trillion in FY 2023/2024 to LE 1.7 trillion in FY 2024/2025 at constant prices, recording 23.7 percent growth. Imports also expanded, rising from LE 1.8 trillion to LE 2.3 trillion.
On the expenditure side, Q4 2024/2025 saw significant improvement in investment contribution, with total investments at constant prices reaching LE 1.23 trillion. This shift reflected a structural change, with private investments rising to 47.5 percent of the total, the highest level in five years.
Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, noted that the economy's robust quarterly growth reflects its resilience against external shocks. She emphasized the government's commitment to implementing the National Structural Reform Program, focusing on improving the business climate and expanding private sector participation.
Despite global uncertainty and regional geopolitical tensions, Egypt's annual GDP growth rate of 4.4 percent in FY 2024/2025 exceeded most international projections. The government stressed the importance of ongoing structural reforms to ensure macroeconomic stability, stimulate production, and foster sustainable growth.