Egypt’s economy registered its fastest quarterly growth in three years, expanding by 5% in the fourth quarter (Q4) of fiscal year 2024/2025, a significant rebound from 2.4% a year earlier. This surge lifted the full-year GDP growth to 4.4%. According to the Ministry of Planning, Economic Development, and International Cooperation, the robust performance underscores the nation’s economic resilience against external shocks and is supported by key sectors. Notably, non-oil manufacturing saw a sharp turnaround, with its Industrial Production Index surging 18.8% in Q4 FY2024/2025. Other major drivers included a stronger performance in tourism and continued buoyancy in the Communications and Information Technology (CIT) sector.
The government credited ongoing fiscal discipline and higher public investment for sustaining this growth momentum. Analysts point out that the recovery reflects the early, positive impact of recent structural reforms, including measures aimed at macro-stabilization and increasing private sector participation. Improved investor confidence, bolstered by foreign inflows from Gulf allies and IMF-backed programs, is capitalizing on a more competitive exchange rate and steady energy supply, particularly benefiting export-oriented sectors like manufacturing.
Despite the fastest quarterly expansion since 2022, policymakers face the delicate challenge of maintaining this momentum without triggering economic instability. Persistent issues include high inflation and tight monetary conditions, necessitating a continued focus on inclusive growth. The task now is to ensure the growth trajectory is sustained while preventing a resurgence of inflationary pressures or fiscal imbalances, ensuring the reform benefits are widely realized.
