Egypt’s GDP hits 5.3% in first quarter 2025/2026, highest in 3 years

By: Chidozie Nwali

The Egyptian Ministry of Planning, and Economic Development said on Thursday, that it marks the strongest quarterly performance in over three years, significantly outpacing the 3.5% growth recorded in the same quarter last year.The North African economy has demonstrated robust health, accelerating sharply to register 5.3% GDP growth in the first quarter of the 2025/2026 fiscal year.

Minister of Planning Rania Al-Mashat attributed the momentum to the government’s continued economic and structural reforms, which are successfully re-orienting growth towards productive, high-value sectors and empowering the private sector.

The Non-Oil Manufacturing sector expanded by a remarkable 14.5% in the quarter, nearly doubling the growth rate from the previous year. This surge was reported to be demand-driven rather than purely price-driven.

This strong performance in manufacturing is supported by parallel growth in exports, with semi-finished goods exports rising 34.1% in August 2025.

Another key highlight was the decisive rebound in activity for the Suez Canal, which had been severely impacted by geopolitical tensions in the Red Sea.

The canal  Recorded an 8.6% positive growth rate, marking its first increase since December 2024, signaling a return to stability in the vital global waterway.

Tourism Maintained its upward momentum, growing by 13.8% and attracting approximately 5.1 million tourists during the quarter.

ICT Advanced by 14.5%, reflecting a strategic shift from a service-centric model to a production-based, digital-export economy, with rising investments in outsourcing.

The Minister of Planning and Economic Development  said “private investments achieve a remarkable growth of 25.9% to capture 66% of total investments” executed; highest level recorded in recent periods, while the share of public investment declined to 34%.

The International Monetary Fund had approved an extended loan package of $8 billion to support economic reforms in the country. The IMF approved the disbursement of the fourth tranche, worth about $1.2 billion in march/april.

Private Investment contributed 2.45 percentage points to the overall GDP growth.