Egypt’s Real GDP Grew 4.77% in Q3 of FY2024-25

The Egyptian Ministry of Planning, Economic Development, and International Cooperation said that the country’s economy continued its robust recovery, with real gross domestic product (GDP) growth accelerating to 4.77% in the third quarter of FY2024-2025 (January to March), the highest quarterly rate in three years, up from 2.2% in the same quarter last year.

This pushed average growth for the first nine months of the fiscal year to 4.2%, compared to 2.4% during the same period a year earlier. This robust performance signals a sustained recovery and growing resilience of the economy amid global uncertainties.

The strong outturn also reflects the continued implementation of the reform agenda, under the National Structural Reform Program, which is instrumental in maintaining macroeconomic stability, improving the governance of public investment, enhancing economic competitiveness, and expanding private sector participation.

Key sectors driving expansion include non-oil manufacturing sector, maintaining its upward performance, alongside significant growth in both the tourism sector (represented by restaurants and hotels) and the telecommunication sector – despite continued decline in the Suez Canal, due to geopolitical tensions, and the extractive industries sector.

On the expenditure side, growth was notably supported by net exports, which contributed approximately 2.7 percentage points to overall GDP growth. This positive contribution was driven by strong expansion in both goods and services exports, with total exports rising by 54.4% – significantly outpacing the 18.7% increase in imports.

Moreover, private investment accelerated at constant prices by 24.2% y-o-y during the third quarter of FY2024-2025, exceeding public investment for the third consecutive quarter and accounting for 62.8% of total implemented investments (excluding inventory).

However, this increase was not sufficient to offset the sharp decline in public investment, which contracted by 45.6% y-o-y at constant prices. As a result, the overall contribution of investment to GDP growth was negative, reducing the overall growth rate by approximately 2.44 percentage points.

Public Investment Share Falls

Meanwhile, the share of public investment continued declining recording 37.2%, reflecting the government’s strategic shift toward restructuring capital expenditure, enhancing the governance of public investment, and creating greater space for private sector participation.

Moreover, high-frequency indicators underscore a continued recovery of economic activity in Egypt during the third quarter. The industrial production index (excluding crude oil and petroleum products) grew by 16.03%, rebounding from around 4% contraction a year earlier. This recovery was led by strong output in key industries such as motor vehicles (93%), ready-made garments (58%), beverages (34%), paper (20%), and textiles (17%).

Despite ongoing global uncertainties, preliminary data suggest that Egypt’s real GDP growth in the FY2024-2025 is on track to surpass the initial target of 4%, supported by a rebound in private investments, a solid recovery in non-oil manufacturing activity, and strong GDP performance over the first nine months of the fiscal year.

Dr Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, said that the Egyptian economy continued its robust recovery in the third quarter of the current fiscal year, demonstrating growing resilience amid mounting global uncertainties.

The higher-than-expected GDP growth was driven by strong performance in key sectors, most notably non-oil manufacturing, tourism, and telecommunications, reflecting the tangible impact of Egypt’s macroeconomic policies and structural reform agenda.

She emphasised that this momentum builds on the solid recovery observed since the start of the fiscal year and aligns with the government’s broader strategy to promote private sector–led growth and advance the transition toward a more competitive, export-oriented economy focused on tradable goods and services.