Good afternoon, friends, and congratulations on making it halfway through another shorter-than-usual workweek. As the weather heats up, the news cycle begins to cool down. Some good news as we close out the fiscal year today? Egypt’s economy just marked its strongest quarterly performance in three years.
THE BIG STORY TODAY-
Egypt’s economy grew 4.8% y-o-y in 3Q FY 2024-25, more than doubling from 2.2% y-o-y in the same period last year and marking its strongest quarterly performance in three years, according to a statement from the Planning and International Cooperation Ministry. Average growth for the first nine months of the fiscal year rose to 4.2% y-o-y, up from 2.4% y-o-y a year earlier.
The growth was fueled by strong gains in key tradable sectors, with tourism growing 23.0% y-o-y, non-oil manufacturing expanding 16.0%, and telecommunications up 14.7%. Exports rose 54.5%, contributing around 2.7 percentage points to GDP growth, while private investment grew 24.2% y-o-y during the quarter, despite a 45.6% y-o-y slump in public investment that weighed on overall contributions.
Weighing on the momentum: Suez Canal activity fell by 23.1% on the back of a decline in vessel traffic due to Red Sea disruptions. Extractive industries also continued to decline as oil and natural gas extraction contracted during the quarter.
The government expects growth for FY 2024-25 to exceed its 4.0% target, citing the rebound in private investment and non-oil manufacturing activity as positive preliminary data.
THE BIG STORY ABROAD-
Canada pulled back a planned 3% digital services tax on major US tech firms just hours before it was due to take effect today in a bid to restart trade negotiations with the US. The move came after US President Donald Trump called off trade discussions on Friday, describing the tax a “direct and blatant attack” and threatening to impose a fresh tariff on Canadian goods. The tax would have retroactively applied to firms like Amazon, Meta, Google, and Apple, charging 3% on digital revenues from Canadian users above CAD 20 mn in a calendar year. Trump and Canadian Prime Minister Mark Carney have agreed to resume negotiations to reach an agreement before 21 July. (Reuters | Financial Times | Bloomberg | Guardian)
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☀️ TOMORROW’S WEATHER- It’s going to be another sunny day in the capital, with temperatures reaching a high of 36°C, before cooling down to 24°C at night. The North Coast will continue to experience cooler weather, with the mercury set to peak at just 27°C, before slightly dropping to 25°C at night, according to our favorite weather app.




