According to the report, several sectors contributed to the acceleration in growth, particularly non-oil manufacturing, tourism, information and communications technology (ICT), and trade-related transportation and storage.
Egypt’s economy continued its recovery trajectory during the second quarter of FY2024/2025, with GDP growth reaching 4.3%, up from 2.3% in the same period of the previous fiscal year, according to a report released by the Ministry of Planning, Economic Development, and International Cooperation.
According to the report, several sectors contributed to the acceleration in growth, particularly non-oil manufacturing, tourism, information and communications technology (ICT), and trade-related transportation and storage.
Non-oil manufacturing saw strong performance for the third consecutive quarter, expanding by 17.7%—a stark contrast to the 11.5% contraction it recorded in the same quarter last year.
Tourism also witnessed significant growth, with an 18% expansion that reflected a recovery in travel demand and higher activity in restaurants and hotels.
ICT continued its upward trend with a 10.4% growth rate, underscoring the sector’s growing importance in the Egyptian economy.
Meanwhile, trade and logistics activities also saw an uptick, although growth was tempered by ongoing declines in the Suez Canal.
Despite the overall positive trend, the Suez Canal remains among the most affected sectors due to regional geopolitical tensions, which led to a 70% contraction in revenues as a result of reduced vessel traffic.
The extraction sector also experienced continued decline, though there are expectations of a medium-term recovery supported by planned investments in new discoveries and field development projects.
Private sector contributions accounted for more than 50% of total investments, while public investment fell below 40%.
This development reflects a structural transformation aimed at empowering the private sector as a key engine of economic growth.
Additionally, net exports made a positive contribution to GDP for the first time since the first quarter of FY 2023/2024, adding 1.75 percentage points to the overall growth figure.
Supporting these results are high-frequency indicators that point to sustained economic recovery. The Purchasing Managers’ Index (PMI), which reflects private sector activity, rose slightly above the neutral 50 threshold by early 2025, reaching its highest level in nearly four years.
