Egypt’s Economy Expands 5.2% in First 9 Months of FY 2025/26

Egypt's economy recorded real GDP growth of 5.2% during the first nine months of the 2025/26 fiscal year, reflecting continued economic recovery and strengthening private-sector activity, according to the Ministry of Planning and Economic Development.

The growth rate covers the period from July 2025 through March 2026, marking one of the strongest performances for the Egyptian economy in recent years and highlighting a sustained expansion that began in the second half of 2024.

The latest figures extend a period of accelerating economic growth after the economy expanded at a more modest pace of between 2.2% and 2.6% during most quarters of fiscal year 2023/24.

Since then, economic activity has steadily strengthened, with growth exceeding the 5% threshold for three consecutive quarters. The economy expanded by 5.03% in the fourth quarter of fiscal year 2024/25, followed by 5.30% and 5.32% in the first and second quarters of fiscal year 2025/26.

Although growth eased slightly to 5.2% in the third quarter, the rate remains among the highest recorded in recent years and signals continued resilience across key sectors of the economy.

The data indicate that Egypt has successfully shifted from growth levels close to 2% during fiscal year 2023/24 to sustained expansion above 5% during the current fiscal year.

Planning officials said Egypt's economic outlook remains supported by a diversified production base.

Five major sectors are expected to account for approximately 64% of targeted economic growth during fiscal year 2026/27: including manufacturing, wholesale and retail trade, tourism, construction and building activities, and agriculture.

The government believes these sectors will continue to serve as the primary engines of growth, employment creation, and investment expansion.

Officials also emphasized that Egypt remains committed to implementing structural reforms aimed at supporting sustainable economic development, improving the governance of public investments, and diversifying financing sources.

Speaking on the government's economic agenda, Investment and Foreign Trade Minister Hassan El Khatib said authorities are continuing to advance the state's privatization and public offerings program to deepen capital markets and expand private-sector participation in the economy.

According to the minister, private investment now accounts for approximately 59% of total investments, compared with a historical average of around 42%, highlighting the growing contribution of private capital to Egypt's economic expansion.

He also pointed to the significant development of the country's capital markets, noting that the market capitalization of the Egyptian Exchange has surpassed EGP 3.8 trillion, compared with approximately EGP 1 trillion in 2018.

El Khatib said upcoming offerings in the insurance sector, led by Misr Life Insurance, are expected to play an important role in attracting new investment and accelerating the development of Egypt's insurance industry.

He described the company as one of the largest life insurers in Egypt and the wider region, adding that its planned listing reflects the significant growth opportunities available within the sector.

The government's ongoing privatization strategy is viewed as a key component of broader efforts to improve market efficiency, attract foreign investment, and reinforce the role of the private sector as a primary driver of long-term economic growth.

With growth remaining above 5%, private investment reaching record levels, and major sectors continuing to expand, Egypt's economy appears positioned to maintain its recovery trajectory as policymakers pursue further reforms and investment-led development initiatives.