Egypt's economy expanded by 5.3% in the first quarter of the 2025/2026 fiscal year, marking the highest growth in over three years. This surge stems from structural reforms boosting manufacturing, tourism, and telecommunications sectors. The ministry forecasts at least 5% growth for the full year.
The Ministry of Planning, Economic Development, and International Cooperation announced that Egypt's gross domestic product rose by 5.3% in the first quarter of the 2025/2026 fiscal year, compared to 3.5% in the same period last year. This represents the strongest quarterly growth in over two years, fueled by structural reforms shifting the economy toward high-productivity areas such as non-oil manufacturing, tourism, and telecommunications.
Private investments surged 25.9%, comprising 66% of total executed investments, while public investment fell to 34%. The ministry stated: "This acceleration reflects the tangible impact of ongoing economic and structural reforms."
Minister Rania Al-Mashat noted that the above-expected growth indicates sustained momentum from non-oil manufacturing, tourism, and telecommunications. She added: "Macroeconomic stability enables structural reforms, while reforms reinforce stability, laying the foundation for sustainable growth."
Sector-wise, non-oil manufacturing grew 14.5% versus 7.1% last year, with notable gains in motor vehicles (50%), chemical products (44%), and beverages (37%). Exports of semi-finished goods increased 34.1% in August 2025, while finished goods rose 2.4%.
Tourism expanded 13.8%, drawing nearly 5.1 million visitors and securing Egypt's position as Africa's top destination for the third straight year. The Suez Canal posted 8.6% growth, its first rise since Q2 of 2023/2024 after 18 months of declines due to Red Sea tensions.
Conversely, the extractive sector shrank 5.3%, with petroleum down 6.6% and natural gas 10.9%, though the contraction eased from 8.9% previously. Recent finds, including 75 oil and gas discoveries and 383 new wells, boosted capacity by 1.1 billion cubic feet of gas and 200,000 barrels of oil daily. The ministry anticipates further gains from regional stability, potentially pushing annual growth beyond 5%.