The ministry said the uptick was driven by improving productive sectors and the continued implementation of economic and structural reforms.
The Ministry of Planning, Economic Development, and International Cooperation announced that Egypt’s GDP growth accelerated to approximately 5.3% in the first quarter of FY202/2026, marking the strongest quarterly performance in more than three years.
The ministry said the uptick was driven by improving productive sectors and the continued implementation of economic and structural reforms.
It added that Egypt’s economic outlook has become increasingly positive as reforms progress, with growth expected to reach 5% by the end of the fiscal year.
According to the ministry, the latest figures reflect a clear shift toward productive sectors and the expansion of the real economy.
Private sector investments recorded a sharp rise of 25.9% in Q1 of FY 2025–2026, representing 66% of total investments.
The ministry also reported that the Suez Canal has emerged from its recent contraction phase, posting growth of 8.6% in Q1, its first positive rate since December 2024, supported by renewed stability in the Red Sea region.
It added that financial intermediation, insurance, electricity, wholesale trade, and construction activities continued to bolster growth during the quarter.
The government, the statement noted, is pushing ahead with efforts to improve the industrial business environment and advancing reforms aimed at localizing manufacturing and technology.
The ministry highlighted strong performance in the communications and IT sector, supported by a clear strategy to shift the sector from a service-driven model to a production-based one.
Rising investment in outsourcing and digital export activities is expected to further strengthen growth prospects.
The tourism sector also saw rising momentum, boosted by increased infrastructure spending and expanding private investment.
The upcoming inauguration of the Grand Egyptian Museum, it added, signals strong prospects for the sector and reinforces Egypt’s position as a global tourism destination.
The ministry further noted a slowdown in the contraction of the extractives sector, supported by recent gas and oil discoveries.
It emphasized the government’s clear direction toward better governance of public investments, prioritizing key sectors, and providing greater space for private sector participation. The state, it said, is committed to advancing the localization of high-tech, knowledge-based industries.
