Arab Finance: Egypt’s gross domestic product (GDP) growth hit 5% in the third quarter (Q3) of fiscal year (FY) 2025/2026, versus 4.8% in Q3 of FY2024/2025, according to the preliminary results announced by Minister of Planning and Economic Development Ahmed Rostom.
During the weekly Cabinet meeting, chaired by Prime Minister Mostafa Madbouly, Rostom noted that this growth exceeded expectations, as it was anticipated to decline to 4.6% due to geopolitical tensions in the Middle East and higher oil prices.
The Egyptian economy witnessed significant growth across various non-petroleum sectors despite the regional crisis’s repercussions, including supply chain disruptions and oil price volatility.
Preliminary results showed Suez Canal activity partially recovered, recording a 23.6% growth in Q3 FY2025/2026, while the hospitality and construction sectors grew by 8.3% and 5.6%, respectively. Non-oil manufacturing business climbed by 2.1%, the minister added.
Likewise, industrial production witnessed a surge in some sub-sectors: wood (60%), motor vehicles (27%), chemical products (10%), and pharmaceuticals (8%). The paper and food industries both achieved a growth rate of 4%.
Addressing the significant growth in the construction sector, the minister highlighted that Fitch Ratings expects the industry’s growth rate to rise from 4.1% in FY 2024/2025 to 5.6% in FY 2026/2027, and then to 6.6% in FY 2027/2028.
The anticipated growth is backed by increased investments in energy projects, development of the electricity grid, and expansion of renewable energy, as well as mixed-use projects that contribute to meeting the growing demand for residential, commercial, and service spaces.
In Q2 FY2025/2026, Egypt’s economy grew to 5.3%, marking its highest growth since Q3 FY 2021/2022.
Earlier, on May 3rd, Rostom outlined economic growth rate estimates for the coming FYs, with the state’s economy expected to record a 5.4% growth by the end of FY2026/2027. In line with the developed medium-term plan, the growth rate is likely to reach 6.8% at the end of FY 2029/2030.
