URGENT: Egypt’s economy grows 5.1% in FY2025/26, beating forecasts – minister

Egypt’s economy grew 5.1 per cent in the 2025/26 fiscal year, accelerating from 4.4 per cent a year earlier and exceeding forecasts from international institutions, Planning Minister Ahmed Rostom said on Thursday.

The economy grew 4.7 per cent in the fourth quarter, Rostom told a Cabinet meeting chaired by Prime Minister Moustafa Madbouly at the government headquarters in the New Capital.

The stronger performance was driven by improved activity in several key sectors, particularly non-oil manufacturing, the Suez Canal, and petroleum refining, Rostom said.

Non-oil manufacturing was the largest contributor to economic growth in both the fourth quarter and the full fiscal year, he said.

Telecommunications was the second-fastest-growing activity in the fourth quarter, expanding by 24.3 per cent, driven by higher revenues at Egyptian telecom companies, increased digital services exports, improved internet indicators, and greater investment in digital infrastructure.

The Suez Canal recorded the strongest growth among economic activities in the fourth quarter, expanding by 33.8 per cent, while activity grew by 23.3 per cent over the full fiscal year, as the key source of foreign currency revenue recovered from a contraction a year earlier.

Petroleum refining grew 22.4 per cent in the fourth quarter and 8.7 per cent over the full financial year, reversing a contraction in the previous year amid higher production and refinery maintenance.

Extractive industries also rebounded in the fourth quarter for the first time since the second quarter of the 2022/23 fiscal year, supported by improved performance in the oil and gas sectors.

Manufacturing, trade, and telecommunications together accounted for 48 per cent of total economic growth during the 2025/2026 year, Rostom said.

Non-oil manufacturing grew 9 per cent over the full year, while restaurants and hotels expanded 6.5 per cent, supported by continued improvement in tourism activity and demand for related services.

Rostom said Egypt had maintained economic growth over the past decade despite periods of global crises and ongoing regional tensions.

Egypt has been implementing economic reforms aimed at restoring macroeconomic stability, attracting investment, and strengthening foreign currency inflows.