The economy grew at a 4.4% clip during the fiscal year 2024-2025, outpacing the 4.2% targeted in the draft budget and the 2.4% growth recorded in FY 2023-2024, according to the Planning and Economic Development Ministry’s quarterly GDP note (pdf)

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Lower than preliminary figures: The figure is 0.1 percentage point below the preliminary figure announced by Finance Minister Ahmed Kouchouk in August.

On a quarterly basis, the economy grew 5.0% in 4Q FY 2024-25, more than double the 2.4% recorded a year earlier.

Despite the regional and global headwinds, our economy posted a robust performance during 2024-2025, boosted by macroeconomic reforms, governance of public investment expenditure, and increased private sector participation in the economy, according to the report. “This positive performance reflects an economic model centered on higher-productivity sectors and tradables with greater export potential,” according to the report.

Key drivers: This economic expansion was mainly buoyed by tourism, which grew 17.3% during the year, non-oil manufacturing, which grew 14.7%, and CIT activity, which recorded growth of 13.8%. Financial intermediation, ins., electricity, and construction also got a mention for seeing notable growth during the year.

Tourism was the fastest-growing sector during the fiscal year, boosted by large investments into tourism infrastructure and increased hotel capacity, enabling the nation to host more than 17 mn tourists over the year. We expect tourism to grow even further in the months to come with the official inauguration of the Grand Egyptian Museum only weeks away.

Non-oil manufacturing activity rebounded from a contraction of 5.2% during FY 2023-2024, making it the largest contributor to GDP growth during the fiscal year. “This progress was supported by measures introduced during the year, including the streamlining of customs clearance procedures for industrial goods, in addition to increased investments in the industrial sector,” the report said. The offering of subsidized loans to priority sectors and support for SMEs also played a part in reviving activity.

A structural shift in investments: Public investment slipped to 43.3% of the total during FY 2024-2025, while private investment climbed to 47.5%, hitting its highest level in five years. This reflects the government’s commitment to rationalizing public investment and boosting the private sector’s contribution to the economy, which is a key requirement by the IMF under our USD 8 loan program.

By the numbers: Public investment inched down to hit EGP 526.6 bn last fiscal year, down from EGP 627.5 bn a year earlier. Meanwhile, private investment climbed to EGP 590.7 bn in FY 2024-2025, up from EGP 474.7 bn.

Key headwinds: The Suez Canal contracted by 52% during FY 2024-2025, revenues fell 47.7% to USD 3.8 bn during the fiscal year as geopolitical tensions in the region continued to impact maritime trade. Meanwhile, the contraction of the global waterway eased to just 5.5% in 4Q FY 2024-2025, compared to a sharp contraction of 68.2% in the same period a year earlier.

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