Cairo, Egypt –
The Egyptian economy has shown encouraging signs of recovery in the first quarter of the fiscal year 2024/2025, with a GDP growth rate of 3.5%, up from 2.7% in the same period last year.
According to recent reports, key sectors such as non-petroleum manufacturing, communications and information technology, tourism, electricity, transportation and storage, and agriculture have contributed to this positive growth.
The Industrial Production Index has also shown significant improvement, growing by 6% in Q1 of FY 2024/2025, compared to a contraction of 7.7% in the same quarter last year. Furthermore, the Purchasing Managers’ Index (PMI) has modestly increased to 49.2 points in November 2024, driven by expansions in manufacturing activities.
Private investments have also seen a substantial increase of 30%, reaching 133.1 billion pounds at constant prices. However, public investments have declined by 60.5%, totaling 57 billion pounds.
International organizations have expressed optimism about Egypt’s economic prospects. The International Monetary Fund (IMF) expects the economy to grow by 4% in 2025, with a projected GDP of EGP 8.7 trillion at constant prices. The Organization for Economic Co-operation and Development (OECD) has also noted that Egypt’s economic growth has held up better than neighboring countries, despite challenges such as high inflation and tightened financing conditions.
While the Suez Canal sector contracted by 68.4% due to geopolitical tensions, affecting the number of vessels passing through the canal, the government remains committed to implementing policies that support economic growth and stability.
As Egypt continues on its path to economic recovery, the government is expected to focus on sustaining momentum in key sectors and addressing challenges to ensure a stable and prosperous future for its citizens.
Details in depth ;
Egypt’s economy is showing signs of recovery, with a GDP growth rate of 3.5% in the first quarter of the fiscal year 2024/2025, up from 2.7% in the same period last year. This growth is attributed to positive performances in key sectors such as non-petroleum manufacturing, communications and information technology, tourism, electricity, transportation and storage, and agriculture.
Key Economic Indicators:
– GDP Growth Rate:
3.5% in Q1 of FY 2024/2025, expected to reach 4% in the current fiscal year
– Industrial Production Index:
6% growth in Q1 of FY 2024/2025, compared to a contraction of 7.7% in the same quarter last year
– Purchasing Managers’ Index (PMI):
Modest increase to 49.2 points in November 2024, driven by expansions in manufacturing activities
– Private Investments:
30% increase, reaching 133.1 billion pounds at constant prices
– The International Monetary Fund (IMF) expects Egypt’s economy to grow by 4% in 2025, with a projected GDP of EGP 8.7 trillion at constant prices
*Challenges:*
– The Suez Canal sector contracted by 68.4% due to geopolitical tensions, affecting the number of vessels passing through the canal
– The extraction sector experienced an 8.9% decline, but production of gas and oil is expected to improve in the coming months
Overall, Egypt’s economy is on a path to recovery, driven by government reforms and positive performances in key sectors. However, challenges persist, and the government needs to continue implementing policies to support economic growth and stability.
