Egypt’s economy grows 5% in Q3 2025/26 defying regional tensions – planning minister
Egypt’s economy grew 5 per cent year-on-year in the third quarter of fiscal 2025/26, up from 4.8 per cent a year earlier, Planning and Economic Development Minister Ahmed Rostom said on Wednesday.
Presenting the latest economic indicators at a Cabinet meeting chaired by Prime Minister Moustafa Madbouly, Rostom said growth in the January–March quarter was driven by manufacturing, telecommunications, trade, and a rebound in the petroleum sector.
“Egypt’s economy grew 5% in the third quarter of fiscal 2025/26, up from 4.8% a year earlier, outperforming expectations that growth could slow to 4.6% amid regional geopolitical tensions, supply chain disruptions, and higher oil prices,” Rostom said.
Manufacturing industries made the largest contribution to growth, accounting for about one percentage point of the overall expansion, he said. Meanwhile, the information and communications technology sector and wholesale and retail trade each contributed 0.7 percentage points, he said.
Rostom said the Suez Canal sector was the fastest-growing activity in the quarter, expanding 23.6 per cent, which he attributed to the canal authority’s ability to maintain regular shipping services despite regional tensions.
The ICT sector expanded 20.3 per cent on stronger demand for internet, telecommunications, and digital services.
The petroleum sector returned to growth for the first time since the first quarter of fiscal 2023/24, expanding 0.7 per cent on higher domestic production of crude oil, condensates, and butane gas, he added.
Total implemented investments rose to 637 billion Egyptian pounds during the quarter, up from 531 billion pounds a year earlier, while the share of private-sector investment remained above 50 per cent of the total during the first nine months of fiscal 2025/26, Rostom said.
“The indicators show the private sector’s contribution to investment activity continues to rise, with private investment exceeding 50% of total investment in fiscal 2024/25 and remaining above that level during the first nine months of fiscal 2025/26,” Rostom said.
He said the figures reflect ongoing efforts to strengthen the private sector’s role as a driver of investment and growth, while public investment’s share declined as the government aimed to create more space for private-sector participation.
Household consumption remained the main contributor to economic growth, adding 6.1 percentage points, up from 4.8 percentage points a year earlier. Government spending contributed 3.1 percentage points, compared with 0.3 percentage points a year earlier. Investment and inventory changes added 0.9 percentage points after subtracting 2.4 percentage points in the same quarter of the previous year.
Attribution: Amwal Al Ghad English