Egypt’s GDP growth accelerates to 4.3% in Q2-FY2024/25

Egypt’s GDP growth rate accelerated to 4.3 per cent in the second quarter of the 2024/2025 fiscal year, up from 2.3 per cent in the same quarter last year, according a statement by the ministry of planning on Wednesday.

“This growth is driven by continued government policies aimed at maintaining macroeconomic stability, coupled with stringent governance of public investment.” Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat commented in a statement.

The expansion was driven by strong performance in several key sectors, including non-oil manufacturing, tourism (restaurants and hotels), communication and information technology (ICT), and trade-related transportation and storage. Despite geopolitical tensions affecting Suez Canal revenues, these sectors helped sustain economic momentum.

On the expenditure side, private investment exceeded public investment in the second quarter, for the second consecutive quarter, exceeding 50 per cent of total investments. Conversely, public investment contracted by 25.7 per cent, reflecting a continued shift in Egypt’s investment landscape.

Sectoral Performance

• Non-Oil Manufacturing: The sector emerged as the leading growth driver, expanding by 17.74 per cent, reversing an 11.56 per cent contraction in the previous year. Increased production and customs clearance facilitations contributed to this recovery.
• Tourism: The hospitality sector (restaurants and hotels) saw an 18 per cent growth, with tourist stays reaching 41.92 million nights, reflecting increased visitor inflows.
• ICT Sector: Driven by digital infrastructure expansion and rising demand for services, the sector recorded a 10.4 per cent growth rate.
• Trade and Transportation: Despite geopolitical disruptions impacting the Suez Canal, trade-related transportation and storage remained resilient.

Outlook 

Minister Al-Mashat underscored that fiscal and monetary policy adjustments have solidified macroeconomic stability, reinforcing growth momentum. She highlighted Egypt’s ongoing economic reforms aimed at enhancing competitiveness and sustainability, attracting further private sector investment, and boosting investor confidence.

“Net exports shifted to contribute positively to growth in the second quarter of the current fiscal year, driven by the growth of goods and services exports.” the minister noted.

Despite external challenges, including geopolitical uncertainties affecting global trade routes, Minister Al-Mashat said the “growth outlook remains positive, supported by ongoing structural reforms and diversification of the Egyptian economy’s structure.”

Attribution: Amwal Al Ghad English