Egypt's GDP growth rate rose to 4.77 percent during the third quarter of fiscal year 2024/25, compared to 2.2 percent in the same quarter of the previous year. This is the highest quarterly growth rate in three years. Ahmad Abdel Rahman explains.
The Ministry of Planning, Economic Development, and International Cooperation explained in a statement issued a few days ago that the growth rate during the first nine months of the current fiscal year has grown significantly to approximately 4.2 percent, compared to approximately 2.4 percent during the same period of the previous fiscal year. This development reflects a sustainable recovery and the economy's increasing resilience in the face of global uncertainty.
Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, affirmed that the recovery of the Egyptian economy during the first nine months of the current fiscal year reflects the effectiveness of the reforms implemented by the government at the macro and structural levels and their role in strengthening the economy's resilience. This is despite global and regional challenges.
Al-Mashat added that the growth rates achieved in the third quarter exceeded expectations, due to the continued improvement in the performance of several key sectors, most notably non-oil manufacturing, tourism, communications, and information technology.
The Minister indicated that this positive momentum is consistent with the state's vision to achieve private sector-led economic development and transition to a competitive economy based on export-oriented sectors.
She also affirmed that the state is moving forward to consolidate this recovery by localising industry and implementing incentive measures to increase domestic
production and encourage investment. She added that growth in the third quarter witnessed an increasing contribution from the financial services, insurance, and construction sectors.
Regarding the development of private sector investments, the Minister emphasised that the indicators reflect the growing role of the private sector in driving development, with private investments increasing by 24.2 percent in the third quarter of 2024, accounting for 62.8 percent of the total investments implemented. This reflects growing investor confidence in the Egyptian economy and the success of government policies in expanding the private sector's participation in development, as well as the state's commitment to public investment governance, which provides greater space for domestic and foreign private investment.
Growth rate exceeds 4 percentDespite the continued uncertainty surrounding the global economy, preliminary indicators show the Egyptian economy is on track to achieve a growth rate exceeding the set target of four percent during the 2024/25 fiscal year, supported by increased private investment and industrial recovery. Average growth during the first nine months was approximately 4.2 percent, according to the Ministry of Planning, Economic Development, and International Cooperation.
This has been achieved despite the outbreak of war between Israel and Iran on June 13, 2025, and the concerns it raised about escalating regional tensions. The repercussions on global oil, commodity, and financial markets were less than expected.
The industrial sectorThe growth witnessed in the third quarter was reflected in the continued recovery in non-oil manufacturing activity, achieving a growth rate of 16 percent during the quarter, compared to a contraction of four percent during the same period of the previous fiscal year.
This growth coincides with the state's commitment to intensifying investments in the industrial sector, a priority of the National Structural Reform Program. This was reflected in the average growth of the manufacturing index (excluding crude oil and petroleum products) by 16.03 percent during the quarter.
Several industries also saw significant growth, including the automotive industry (93 percent), ready-made garments (58 percent), beverages (34 percent), paper (20 percent), and textiles (17 percent). Industrial growth was associated with a significant improvement in export performance. Exports of finished goods recorded an annual increase of 12.7 percent, reinforcing the industrial sector's role as a major driver of growth.
The ready-made garment sector is a prominent example, with its exports achieving annual growth exceeding 23 percent during the same period, benefiting from changes in the global trade landscape and increased external demand. This reflects the sector's flexibility and ability to respond quickly to global developments.
Several other economic sectors continued to achieve growth rates during the third quarter. Tourism activity (restaurants and hotels) recorded 23 percent growth, driven by an increase in tourist numbers to nearly four million, and the number of tourist nights reaching approximately 41 million.
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