Egypt’s economy expanded by a preliminary 5% in the third quarter of the 2025/2026 fiscal year, supported by a recovery in Suez Canal activity and stronger performance across several non-oil sectors, according to government data and local media reports.
The growth rate marked an increase from 4.8% in the same quarter a year earlier and exceeded previous government expectations of around 4.6%, despite ongoing regional tensions and disruptions to global supply chains.
Minister of Planning and Economic Development Ahmed Rostom said the improved performance was driven by a rebound in key sectors, particularly the Suez Canal, which recorded growth of around 23.6% during the quarter as shipping traffic gradually recovered.
The restaurants and hotels sector grew by 8.3%, while construction activity rose by 5.6%, supported by ongoing infrastructure and urban development projects, according to the data. Non-oil manufacturing also continued to expand, posting growth of 2.1%.
Officials said the canal maintained positive growth for a third consecutive quarter despite continued geopolitical tensions in the Red Sea region, which had disrupted maritime trade routes over the past two years.
Egypt’s economy has faced pressure from regional instability, inflation and higher import costs, but authorities say structural reforms and increased private-sector activity have helped support growth momentum.
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