CAIRO, November 27, 2025: Egypt’s economy recorded a growth rate of 5.3 percent in the first quarter of fiscal year 2025/2026, its fastest quarterly expansion in more than three years, according to official data released by the Ministry of Planning, Economic Development, and International Cooperation. The increase reflects stronger performance across several key sectors, signaling a broad-based improvement in economic activity.
The ministry reported that growth was led by gains in manufacturing, construction, tourism, and Suez Canal revenues, along with a steady rise in agricultural output and non-oil exports. The data indicated that these sectors benefited from ongoing investment inflows and increased domestic production capacity. Planning Minister Rania Al-Mashat confirmed that Egypt’s economic growth target for the full fiscal year ending in June 2026 has been revised to around 5 percent, up from an earlier projection of 4.5 percent.
She noted that the stronger first-quarter results reflect the cumulative effect of reforms and operational improvements in both public and private sectors. Recent figures show that the manufacturing sector expanded by over 6 percent in the quarter, supported by higher industrial output and an increase in export-oriented activities. The construction sector grew by approximately 5.8 percent, driven by continued infrastructure development and urban expansion projects.
Infrastructure and export growth reinforce GDP gains
Meanwhile, the tourism sector maintained a steady recovery pace following higher international visitor arrivals during the summer season. The Suez Canal, a major foreign currency earner, posted higher revenues during the period due to increased global trade flows and expanded transit capacity. The agriculture sector also contributed positively, supported by improved irrigation systems and stronger crop yields.
Together, these factors bolstered overall productivity and employment in key areas of the economy. According to the Ministry of Planning, the private sector’s contribution to GDP increased notably during the quarter, highlighting improved business confidence and investment activity. The report added that Egypt’s reform initiatives particularly those related to fiscal management, investment facilitation, and export competitiveness have played a central role in enhancing output and sustaining growth momentum.
Egypt maintains fiscal stability amid global pressures
Official data also pointed to stable inflation trends and moderate exchange rate movements during the first quarter, conditions that helped maintain production efficiency and trade balance stability. The government’s continued focus on fiscal discipline, debt management, and foreign reserve strengthening has further supported the economic outlook for the remainder of the fiscal year. Egypt’s fiscal year runs from July to June. The 5.3 percent GDP expansion recorded between July and September 2025 places the economy ahead of its annual growth target.
The Ministry of Planning said it will continue to monitor performance indicators and sectoral developments to ensure that policy measures remain aligned with national economic objectives and medium-term development plans. The latest figures represent Egypt’s strongest quarterly growth since 2022, underscoring the resilience of its productive sectors despite persistent regional and global economic challenges. The report concluded that continued progress in industrial activity, trade, and infrastructure investment remains key to maintaining the country’s current growth trajectory. – By Content Syndication Services.