Egypt’s economy grew by about 4.4% in fiscal year (FY) 2024/25, driven by a strong fourth quarter that saw gross domestic product (GDP) growth hit a three-year high of about 5%, the planning ministry said.
The annual growth rate was a significant increase from the 2.4% recorded in FY 2023/24 and surpassed the government’s initial projection of 4.2%. The fourth-quarter growth of 5% compared to 2.4% in the same quarter a year earlier.
In a report, the Ministry of Planning, Economic Development, and International Cooperation said the recovery reflects the resilience of the Egyptian economy and was supported by policies aimed at sustaining macroeconomic stability and stimulating private sector participation.
The growth was primarily driven by strong performance in several key sectors, most notably tourism, which grew by 19.3% in the fourth quarter and 17.3% for the full fiscal year. The sector attracted over 17 million tourists during the year, a growth of 16.4%.
Non-oil manufacturing also saw a significant recovery, growing by 18.8% in the fourth quarter and 14.7% for the fiscal year, after a contractionary phase in the previous two years. This was driven by higher industrial output in sectors such as motor vehicles (126%), pharmaceuticals (52%), and ready-made garments (41%).
The communications and information technology sector also achieved notable growth of 14.6% in the fourth quarter and 13.8% for the full year.
The data also revealed a significant structural shift in the country’s investment composition. The share of private investments rose to 47.5% of total investment, its highest level in five years, up from 38.8% in the previous fiscal year. In contrast, the share of public investments declined to 43.3% from 51.2%.
However, some sectors continued to be affected by regional geopolitical tensions. Suez Canal activity contracted by about 52% on an annual basis and fell by 5.5% in the fourth quarter, driven by a slowdown in maritime trade in the Red Sea region.
Similarly, the extractive industries sector, which includes crude oil and natural gas, contracted by nearly 9% for the fiscal year, though the pace of decline began to ease in the fourth quarter, recording a contraction of about 7.4%.
On the expenditure side, there was a significant improvement in the contribution of investment and inventories to growth, which shifted from a negative 0.94 percentage points in the fourth quarter of FY 2023/24 to a positive 4.74 percentage points in the same quarter of FY 2024/25.
Total investments at constant prices reached around EGP 1.23 trillion in the FY 2024/25.
In terms of foreign trade, exports of goods and services rose by 23.7% during the fiscal year, while imports increased by 29.2%. In the fourth quarter, exports of finished goods grew by 12.8%, while fuel exports increased by 29.4%.
The ministry said the positive performance reflects an economic model focused on higher-productivity and export-oriented sectors, supported by recent infrastructure investments, as outlined in detail in “Egypt’s Narrative for Economic Development: Reforms for Growth, Jobs, and Resilience.”
