Egypt's economy showed signs of recovery in early 2025, with preliminary estimates pointing to 5.0 per cent sectoral real GDP growth in the first quarter, according to the Central Bank's Monetary Policy Report for Q1 2025 released on Monday. The estimate is based on leading indicators, which showed improvements in non-petroleum manufacturing and tourism, while indicators linked to the Suez Canal and hydrocarbon sectors signalled continued contraction. In the final quarter of 2024, both real GDP at market prices and at factor cost registered 4.3 per cent, up from 2.3 and 2.2 per cent respectively in Q4 2023. The central bank said the trajectory of the output gap suggests that demand-side inflationary pressures will remain subdued in the short term, helping to support the disinflation path. Meanwhile, the unemployment rate declined to 6.4 per cent in Q4 2024, down from 6.9 per cent a year earlier. Real wages have also continued to rise, though they remain below their long-term trend and pose limited pressure on inflation, the report said. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
