Ahmed Kamel – Egypt Daily News
Egypt’s economy returned to its fastest pace of growth in more than three years, driven by a rebound in productive sectors and the steady implementation of economic and structural reforms, according to Planning, Economic Development and International Cooperation Minister Rania Al-Mashat.
In an official statement, Al-Mashat announced that Egypt’s GDP grew by 5.3% in the first quarter of the current fiscal year, its strongest performance since 2022. She added that the momentum reflects “a more positive outlook for the Egyptian economy,” supported by ongoing reforms aimed at strengthening the foundations of sustainable growth. The government expects GDP growth to reach 5% by the end of the fiscal year ending June 2026.
The acceleration follows an improvement already recorded last fiscal year, with annual growth rising to 4.4% in June 2025, up from 2.4% the previous year. According to Al-Mashat, the consistent uptick demonstrates a structural shift toward real-economy sectors and a renewed emphasis on expanding productive capacity.
One of the central drivers of the improved performance has been the strong rise in private-sector investment. Private investments surged by 25.9%, accounting for 66% of total national investment—an indication, the minister said, of rising business confidence and improved investment conditions.
The Suez Canal, a vital source of foreign currency, also showed signs of recovery after a period of contraction linked to regional disruptions in late 2024. The canal recorded an 8.6% growth rate, its first positive performance since December 2024, benefiting from a return to relative stability in the Red Sea and surrounding maritime routes.
Several other sectors continued to reinforce economic activity. Financial intermediation, insurance, electricity, wholesale trade and construction all contributed positively during the first quarter. The government, Al-Mashat noted, is advancing efforts to enhance Egypt’s industrial ecosystem, improve the business climate, and support the localization of both industry and technology.
The information and communications technology sector remains a major pillar of this strategy. Supported by a clear vision to evolve from a primarily service-based industry into a productive, innovation-driven one, the ICT sector is benefiting from rising investments in digital outsourcing and technology exports. These trends are expected to strengthen the sector’s performance in the coming quarters.
Tourism also continues to regain momentum, fuelled by increased investments in infrastructure and a growing role for the private sector. The long-awaited opening of the Grand Egyptian Museum is seen as a transformative moment for the industry, enhancing Egypt’s global appeal and reinforcing its status as a leading cultural and heritage destination.
In the extractive industries, contraction has begun to ease following recent discoveries in natural gas and petroleum fields, offering fresh prospects for the sector’s stabilization.
Al-Mashat emphasized that the government is committed to refining public investment governance, focusing on national priorities, and expanding the space available for private enterprise. She underscored a guiding economic philosophy: “Stability enables reform, and reform strengthens stability,” describing it as the foundation for Egypt’s long-term development vision.
The minister concluded by reiterating Egypt’s determination to localize high-technology industries and advance a knowledge-based economy, objectives she said will be essential for securing durable growth and improving the country’s competitiveness in the years ahead.
