Egypt’s Ministry of Planning, Economic Development, and International Cooperation announced a continued rise in Egypt’s GDP growth rate during the fourth quarter of fiscal year 24/2025, recording about 5%, compared to the 2.4% growth rate recorded in the corresponding quarter of the previous fiscal year, marking the highest quarterly growth rate achieved in three years.

The ministry stated in a press release that this performance contributed to raising the annual growth rate for fiscal year 24/2025 to about 4.4%, compared to the modest growth rate of about 2.4% recorded in 23/2024, surpassing the targeted growth rate of approximately 4.2% for the year.

According to the statement, growth during the fourth quarter and fiscal year 24/2025 was driven by strong growth in several key sectors, most notably tourism, non-oil manufacturing industries, and the telecommunications and information technology sector.

This recovery was also supported by an 18.8% increase in the non-oil manufacturing index during the fourth quarter of fiscal year 24/2025, compared to a 4.7% growth rate in the same quarter of the previous year, due to the expansion of several key industries such as vehicles (126%), pharmaceutical and medicinal products (52%), and ready-made garments (41%).

On the expenditure side, the quarter saw a notable improvement in the contribution of investment and inventory to output, shifting from negative to positive, indicating a gradual recovery of investment momentum.

Data showed a significant shift in the investment structure, with the contribution of public investments declining to 43.3% of total investment and inventory in fiscal year 24/2025 from 51.2% in 2023/2024, while the share of private investments rose to 47.5%, the highest level in the past five years.

The statement explained that amid global uncertainty and geopolitical tensions in the region, Suez Canal activity continued to decline, albeit at a slower pace, by 5.48% during the fourth quarter and 52% during the fiscal year, affected by regional geopolitical tensions that negatively impacted maritime trade and led to a significant decrease in the number of transiting ships and their cargoes.