URGENT: Egypt’s GDP growth hits 5.3% in Q1

Egypt’s GDP grew 5.3 per cent in the first quarter of the 2025/2026 fiscal year, up from 3.5 per cent in the same quarter of 2024/2025, the Ministry of Planning reported on Thursday.

According to the Ministry’s report, investment contributed 2.45 percentage points to growth, while private investment rose 25.9 per cent, representing 66 per cent of total implemented investments. Public investment declined to 34 per cent.

“For the first time in more than three years, Egypt’s quarterly GDP growth during the first quarter of fiscal year 2025/2026 reaching 5.3 per cent.” Minister of Planning Rania Al-Mashat said.

“The growth momentum is accelerating, supported by improvements in productive sectors and the continuation of economic and structural reforms.” Al-Mashat added.

“The performance of the Egyptian economy reflects a shift towards productive sectors and the development of real-economy industries.”

Industrial Performance

Non-petroleum industrial production grew 14.5 per cent overall, with key sectors reporting:

• Motor vehicles 50 per cent up

• Chemicals and chemical products 44 per cent up

• Beverages 37 per cent up

• Furniture 34 per cent up

• Pharmaceutical, chemical, and medical products 19 per cent up

• Ready-made garments 17 per cent up

Communications and information technology grew 14.5 per cent, tourism 13.8 per cent, and financial intermediation 10.2 per cent.

Other sectors saw notable growth: insurance, electricity, 5.4 per cent, social services including health and education 4.6 per cent, construction 3.3 per cent, wholesale and retail trade, and agriculture.

Suez Canal Activity

Suez Canal activity increased 8.6 per cent, marking the first positive growth since Q2 2023/2024 after nearly 18 months of negative growth due to geopolitical tensions in the Red Sea.

“The Suez Canal overcomes contraction, achieving 8.6% growth for the first time, since December 2024, with the return of stability to the Red Sea region.” Al-Mashat stated.

Extraction Sector

The extraction sector contracted 5.3 per cent, with petroleum 6.6 per cent and natural gas 10.9 per cent. This represents an improvement from a contraction of 8.9 per cent in Q1 2024/2025, supported by recent gas field discoveries and exploratory drilling, which added approximately 1.1 billion cubic feet of gas and 200,000 barrels of crude oil per day, along with 383 new wells and nearly 75 new oil and gas discoveries.

GDP and Net Exports

GDP at constant prices reached 2.34 trillion Egyptian pounds in Q1 2025/2026, compared with 2.23 trillion Egyptian pounds in the same quarter last year. Net exports contributed 1.78 per cent, improving from 3.25 percentage points in Q1 2024/2025.

Outlook

The Ministry also reported that preliminary indicators expect Egypt’s GDP growth for 2025/2026 to be no less than 5 per cent, supported by macroeconomic stability and ongoing structural reforms.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser