Egyptian Economy Regains Growth Momentum

The Egyptian economy has seen a significant turnaround since the implementation of economic reform measures began in March 2024, according to Minister of Planning, Economic Development and International Cooperation Rania el-Mashat. The growth rate has risen from 2.4% in the last quarter of the last fiscal year to 3.5% and 4.3% in the first and second quarters of the current fiscal year, respectively. The non-petroleum manufacturing sector, communications and information technology, tourism and transportation, and storage sectors have led the growth, despite the negative impact of geopolitical tensions on Suez Canal activity.

Key Takeaways:

• The Egyptian economy has regained growth momentum, with a growth rate of 2.4% in the last quarter of the last fiscal year, rising to 3.5% and 4.3% in the first and second quarters of the current fiscal year, respectively.
• The non-petroleum manufacturing sector, communications and information technology, tourism and transportation, and storage sectors have led the growth, despite the negative impact of geopolitical tensions on Suez Canal activity.
• The minister emphasized the importance of strengthening partnerships with international institutions to provide more financing tools, with a focus on tradable and export-oriented sectors.
• The government aims to maintain macroeconomic stability and expand the role of the private sector, with a focus on empowering the private sector to lead development and govern public investments.
• Concessional financing to the private sector has exceeded $14.5 billion over the past five years, with financing directed to the private sector accounting for a large proportion of international support.
• The ministry seeks to increase concessional financing for the private sector to $10 billion to implement renewable energy projects with a capacity of up to 10 gigawatts, supporting the achievement of a 42% share of renewable energy by 2030.

Statistics:

• Economy growth rate: 2.4% (last quarter of the last fiscal year), 3.5% (first quarter of the current fiscal year), and 4.3% (second quarter of the current fiscal year).
• Concessional financing to the private sector: $14.5 billion over the past five years.
• Renewable energy projects with a capacity of 4.2 gigawatts: $3.9 billion in concessional financing.
• Target for renewable energy projects with a capacity of 10 gigawatts: $10 billion in concessional financing.
• Target share of renewable energy by 2030: 42%.

Sources:

• Middle East News Agency, "Egyptian economy gains growth momentum as reform measures take effect" (14 May 2025)
• International Monetary Fund (IMF),
• European Union,
• Ministry of Planning, Economic Development and International Cooperation, Egypt