Egypt's economy is forecast to see increased growth in the current and next fiscal years according to the World Bank (WB) and International Monetary Fund (IMF), projections which the government attributed to its economic and structural reform policies. Rania Al-Mashat, Egypt's Minister of Planning, Economic Development and International Cooperation, commented on the forecasts, stating they reflected the effectiveness of state-led reforms. The World Bank, in a recently issued report, expected Egypt's economic growth to rise to 3.8% in the current fiscal year (FY2024/2025) and then to 4.2% in the following fiscal year (FY2025/2026). The IMF also projected growth of 3.8% for the current fiscal year and 4.3% for the next. Al-Mashat, who is also Egypt's Governor at the World Bank, emphasised that these expectations highlight the results of structural reforms. "Positive growth expectations for the Egyptian economy reflect the effectiveness of economic and structural reform policies," Al-Mashat said in comments released by the ministry. She affirmed that the reforms focus on improving the investment environment, supporting the private sector, and enhancing the economy's resilience against shocks. The minister stated the government is committed to "maintaining the path of economic reform to increase growth rates and enhance the economy's resilience and competitiveness." Al-Mashat pointed out that the government aims to achieve comprehensive and sustainable economic growth that contributes to creating job opportunities and improving living standards, which requires continuing and expanding the scope of reforms. She reiterated the state's goal for a strategic shift in the economy. "We aim to achieve a strategic shift in the growth structure towards tradable and export-oriented sectors," Al-Mashat stated. This involves stimulating investments, promoting the localisation of industry, and implementing measures to simplify investment procedures and reduce customs clearance times. According to the World Bank's report, the projected rise in GDP growth to 3.8% in fiscal year 2025 and 4.2% in 2026 is expected to be mainly driven by private consumption, lower inflation, and a relative improvement in investor confidence. Earlier, the Ministry of Planning, Economic Development and International Cooperation announced economic performance results for the second quarter of the fiscal year 2024/2025. Its report showed that gross domestic product recorded a growth rate of 4.3% during that period, compared to 2.3% in the corresponding quarter of the previous fiscal year. The ministry attributed this growth to government policies aimed at consolidating macroeconomic stability alongside the governance of investment spending. During the second quarter of FY2024/2025, non-petroleum manufacturing activity achieved positive growth for the third consecutive quarter, reaching 17.74%, compared to a contraction of 11.56% recorded in the same period of the previous fiscal year. The ministry stated this growth was driven by an increase in industrial production resulting from the facilitation of customs clearance for raw and primary materials for the industrial sector. This recovery was reflected in the index of manufacturing industry (excluding crude oil and petroleum products), which reached 17.7% during the quarter. Key sectors driving this manufacturing growth included the automotive industry (73.4%), ready-made garments (61.4%), beverages (58.9%), and textiles (35.3%).
