Egypt's economy grew at its fastest quarterly pace in three years, with real gross domestic product expanding by 4.77 per cent in the third quarter of fiscal year 2024/2025, the ministry of planning said Sunday. That marked a sharp acceleration from 2.2 per cent in the same quarter a year ago, lifting average growth for the first nine months of the fiscal year to 4.2 per cent. The stronger-than-expected outturn signals Egypt's continued economic recovery and resilience amid global uncertainty, driven by robust gains in non-oil manufacturing, tourism, and telecommunications. Such momentum builds on our reform programme to anchor macroeconomic stability and empower the private sector, Planning Minister Rania Al-Mashat said in a statement. Private investment surged 24.2 per cent year-on-year in constant prices, outpacing public investment for a third straight quarter and accounting for nearly 62.8 per cent of total implemented investments, the ministry said. However, the steep 45.6 per cent contraction in public investment dragged on overall investment's contribution to growth, which was negative by about 2.44 percentage points. Exports also provided a key tailwind, growing 54.4 per cent compared to an 18.7 per cent rise in imports, with net exports adding 2.7 percentage points to growth. Sectoral data showed non-oil manufacturing rose 16 per cent in the quarter, rebounding from a 4 per cent contraction last year, supported by strong performances in motor vehicles, garments, beverages, paper, and textiles. Tourism surged 23 per cent on higher visitor numbers, while telecommunications grew 14.7 per cent. Still, Suez Canal activity fell 23 per cent in the quarter, weighed down by geopolitical tensions and disruptions to shipping routes, although the decline was smaller than last year's 51.6 per cent slump. The extractive sector also shrank, hit by lower oil and gas production. High-frequency indicators, including the Purchasing Managers' Index, suggested private-sector activity remained resilient in early 2025, with March data holding near neutral territory despite modest declines. Looking ahead, parliament has approved an economic and social development plan projecting growth of 4.5 per cent for the 2025/2026 year, with a focus on improving governance of public spending and expanding private-sector participation. Although risks persist — including fallout from the June conflict between Israel and Iran — the statement said global market impacts have so far been contained, reinforcing the government's growth targets. Attribution: Amwal Al Ghad English
