Cairo: Minister of Planning and Economic Development Ahmed Rostom announced that the Egyptian economy recorded a growth rate of 5% during the third quarter of fiscal year 2025/2026, surpassing expectations amid challenging global conditions. This growth rate represents an increase from the 4.8% recorded in the same quarter of the previous fiscal year and outperformed predictions that anticipated a slowdown to 4.6%.
According to State Information Service Egypt, Rostom highlighted the significant contributions of various sectors to this economic performance during a cabinet meeting chaired by Prime Minister Moustafa Madbouly. Manufacturing industries were pivotal, contributing one percentage point to the overall growth rate. The information and communications technology (ICT) sector and wholesale and retail trade each contributed 0.7 percentage points, showcasing the diverse drivers of growth.
The Suez Canal emerged as the fastest-growing economic activity, recording a growth rate of 23.6%. This performance underscores the canal's resilience and importance in global trade, despite ongoing regional tensions. The ICT sector also maintained robust growth, with a 20.3% increase driven by the expansion of telecommunications and digital services.
Rostom noted that the petroleum sector achieved positive growth for the first time since the first quarter of FY2023/2024, with a 0.7% increase. This improvement was linked to higher domestic production of crude oil and related products. Total implemented investments during the quarter reached EGP 637 billion, marking a significant rise from the previous fiscal year's corresponding period.
The private sector's role in investment activities continued to grow, with its share exceeding 50% during FY2024/2025 and maintaining that level throughout the first three quarters of FY2025/2026. This trend reflects the government's efforts to empower the private sector as a key driver of economic growth. In contrast, the share of public investments decreased, aligning with the state's approach to redefine investment roles.
Rostom added that household consumption was a major growth driver, contributing 6.1 percentage points to overall growth. The contribution of government expenditure also rose, highlighting the impact of public spending on economic activity. Additionally, the improvement in investment and inventory changes indicates stronger investment activity and growing confidence in the Egyptian economy.