Egypt raises economic growth outlook to 5.2% by June-end: minister
Egypt’s economy is now expected to grow 5.2 per cent in the 2025-2026 fiscal year, exceeding earlier projections of 4.5 per cent, the planning minister said on Tuesday. The revised outlook comes after the economy expanded 5.3 per cent in the second quarter, the strongest quarterly performance since 2021-2022.
During a Cabinet meeting, Minister Ahmed Rostom said the stronger outlook reflects the continued implementation of structural, fiscal, and monetary reforms that have reinforced macroeconomic stability.
Unemployment fell to 6.2 per cent during the quarter. Female employment rose to 21.7 per cent, up from 18.5 per cent a year earlier, while male employment edged slightly down to 70.8 per cent from 71.3 per cent.
Growth was broad-based across several sectors. Non-petroleum industrial activity expanded 9.6 per cent, contributing 1.2 percentage points to overall GDP growth of 5.3 per cent. The Suez Canal recorded growth of 24.2 per cent, restaurants and hotels rose 14.6 per cent, wholesale and retail trade grew 7.1 per cent, transport and storage increased 6.4 per cent, electricity 5.6 per cent, health 4.6 per cent, and education 3.3 per cent.
The ministry said the strong performance in non-petroleum industry reflected the success of industrial localisation policies, stronger exports of fully and partially manufactured goods, and Egypt’s transformation into a regional industrial hub.
Tourism remained robust, with roughly 19 million visitors arriving in 2025 — a record figure underscoring the country’s growing appeal as an international destination.
Financial services also supported the expansion. Banking activity grew 10.73 per cent and insurance 12.85 per cent, helping advance financial inclusion through wider access to banking and insurance services.
The Suez Canal showed early signs of partial recovery, aided by gradual stabilisation in the Red Sea region and continued efforts to encourage navigation. Meanwhile, the contraction in petroleum and gas activity eased as intensified drilling and exploration programmes boosted production in recent months, alongside measures to support foreign partners and settle a significant portion of outstanding dues.
Rostom also said the performance demonstrates the economy’s increasing resilience to domestic and external challenges.
Attribution: Amwal Al Ghad English