Egypt's GDP grew 5.3 per cent in the first quarter of the 2025/2026 fiscal year, up from 3.5 per cent in the same quarter of 2024/2025. The Ministry of Planning reported on Thursday. According to the Ministry's report, investment contributed 2.45 percentage points to growth, while private investment rose 25.9 per cent, representing 66 per cent of total implemented investments. Public investment declined to 34 per cent. Industrial Performance Non-petroleum industrial production grew 14.5 per cent overall, with key sectors reporting: * Motor vehicles 50 per cent * Chemicals and chemical products 44 per cent * Beverages 37 per cent * Furniture 34 per cent * Pharmaceutical, chemical and medical products 19 per cent * Ready-made garments 17 per cent Communications and information technology grew 14.5 per cent, tourism 13.8 per cent, and financial intermediation 10.2 per cent. Other sectors saw notable growth: insurance, electricity, 5.4 per cent, social services including health and education 4.6 per cent, construction 3.3 per cent, wholesale and retail trade, and agriculture. Suez Canal Activity Suez Canal activity increased 8.6 per cent, marking the first positive growth since Q2 2023/2024 after nearly 18 months of negative growth due to geopolitical tensions in the Red Sea. Extraction Sector The extraction sector contracted 5.3 per cent, with petroleum 6.6 per cent and natural gas 10.9 per cent. This represents an improvement from a contraction of 8.9 per cent in Q1 2024/2025, supported by recent gas field discoveries and exploratory drilling, which added approximately 1.1 billion cubic feet of gas and 200,000 barrels of crude oil per day, along with 383 new wells and nearly 75 new oil and gas discoveries. GDP and Net Exports GDP at constant prices reached 2.34 trillion Egyptian pounds in Q1 2025/2026, compared with 2.23 trillion Egyptian pounds in the same quarter last year. Net exports contributed 1.78 per cent, improving from 3.25 percentage points in Q1 2024/2025. Outlook The Ministry also reported that preliminary indicators expect Egypt's GDP growth for 2025/2026 to be no less than 5 per cent, supported by macroeconomic stability and ongoing structural reforms. Attribution: Amwal Al Ghad English
