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Al-Ahram Weekly
30-06-2025
- Business
- Al-Ahram Weekly
Egypt real GDP grows by 4.7% in 3Q of FY24/25 despite global uncertainty - Economy
Egypt's economy accelerated its recovery in the third quarter (3Q) of the current FY2024/2025 (January-March 2025), recording a growth rate of 4.77 percent, the highest quarterly performance in three years, according to a statement by the Ministry of Planning, Economic Development, and International Cooperation on Monday. This figure is nearly double the 2.2 percent recorded in the same quarter of FY2023/2024. This pushes the average growth rate for the first nine months of FY2024/2025 to 4.2 percent, up from 2.4 percent in the corresponding period of FY2023/2024. Minister of Planning Rania Al-Mashat said this robust performance reflects the growing resilience of the Egyptian economy, particularly amid mounting global geopolitical and financial volatility. The third-quarter GDP surge was primarily driven by sustained progress in the government's structural reform agenda under the National Structural Reform Programme, which focuses on macroeconomic stability, efficient public investment governance, competitiveness, and private sector empowerment. Key drivers of growth Among the key sectors driving Egypt's economic growth are non-oil manufacturing, tourism (including hotels and restaurants), and telecommunications. The non-oil manufacturing sector grew by 16 percent, marking its fourth consecutive quarter of positive growth and contributing 1.9 percent to the overall GDP growth. This follows a contraction of nearly four percent in the same quarter of FY2023/2024. Tourism also continued its strong rebound, growing by 23 percent year-on-year in 3Q. The sector hosted four million tourists during that quarter, generating 41 million tourist nights. Moreover, the telecommunications sector registered a solid growth rate of 14.7 percent. Other supportive sectors like financial intermediation (17.3 percent), insurance (7.7 percent), electricity (5.8 percent), and construction (3.1 percent) added further momentum to economic recovery. Additionally, Egypt's industrial production index (except petroleum products) rose by 16 percent. High-growth industries included motor vehicles (93 percent), ready-made garments (58 percent), beverages (34 percent), paper (20 percent), and textiles (17 percent). Export-led expansion, private investment boom On the expenditure side, net exports made a significant contribution to GDP growth, adding 2.7 percent. Exports surged by 54.4 percent, far outpacing the 18.7 percent growth in imports. Industrial exports of finished goods rose by 12.7 percent, driven by increased competitiveness and demand. The ready-made garments industry was a standout performer, growing by over 23.7 percent in the third quarter, a testament to Egypt's capacity to adapt to shifts in global trade dynamics. Private investment also grew impressively by 24.2 percent year-on-year at constant prices, accounting for 62.8 percent of total investment (excluding inventory) and outpacing public investment for the third straight quarter. This reflects investor confidence and the impact of pro-business policies aimed at harnessing the potential of the private sector. However, the steep 45.6 percent decline in public investment, which now accounts for only 37.2 percent of implemented investments, led to a negative contribution from overall investment, subtracting approximately 2.44 percent from GDP growth. Declining sectors and global headwinds Despite the upbeat overall outlook, some sectors continued to contract. The Suez Canal, affected by regional geopolitical tensions and lower shipping traffic, saw a 23.1 percent year-on-year decline in 3Q, though this was a notable improvement from the 51.6 percent contraction a year earlier. Meanwhile, the extractive industries sector continued to face pressure. Petroleum activity contracted by 9.5 percent, and natural gas extraction declined by 20.5 percent. However, the government expects upcoming field developments and discoveries to reverse this trend. Structural reform and outlook Minister Al-Mashat noted that the ongoing reform efforts are integral to Egypt's development vision, especially the shift toward a competitive, export-oriented, private sector-led economy. These efforts are also reflected in the broader Economic and Social Development Plan for FY2025/2026, which the parliament approved in June 2025. The new plan projects a 4.5 percent GDP growth rate for the next fiscal year, despite ongoing global uncertainties. It maintains a cap on public investment at EGP 1.154 trillion and emphasizes redirecting government spending toward human capital development. Approximately 47 percent of treasury-funded public investments are allocated to education, health, and social services. Recovery confirmed by indicators High-frequency indicators continue to point to a broad-based recovery. Egypt's Purchasing Managers' Index (PMI) reached 50.7 in January 2025, its highest in over four years. Though it dipped slightly to 49.2 in March, the index remained near the neutral mark, indicating relative stability in non-oil private sector activity. Preliminary data suggest that Egypt's full-year GDP growth in FY2024/2025 will exceed the four percent target, driven by solid non-oil manufacturing, strong export performance, and a recovery in private sector activity. This strong momentum positions the country for further gains in FY2025/2026. Impact of geopolitical risks contained The recent outbreak of war between Israel and Iran on 13 June initially raised concerns about broader regional volatility. However, the economic impact on Egypt's key markets has so far remained limited. Oil and commodity markets have shown resilience, enabling the government to maintain its FY2025/2026 targets. Follow us on: Facebook Instagram Whatsapp Short link:
Zawya
13-03-2025
- Business
- Zawya
Private sector now 63% of Egyptian investment, Al-Mashat says
Egypt - Private sector investment now accounts for 63% of total investment in Egypt, Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat has said. Al-Mashat made the announcement during a meeting with the British Egyptian Business Association (BEBA), highlighting the shift as a key indicator of Egypt's economic progress. Speaking at BEBA's annual Sohour ceremony, she emphasized the government's aim to transition towards an economic growth model based on manufacturing, exports, and tradable sectors. Al-Mashat also emphasized that the diversity of the Egyptian economy presents significant opportunities to enhance Egypt's regional position, particularly in the energy and logistics sectors. 'We aim to shift towards an economic growth model based on manufacturing, export, and tradable sectors,' Al-Mashat said. 'Integration among Economic Group Ministries [is key] to adopt policies that enhance the confidence of the business community and the private sector and stimulate investments.' The minister pointed to the government's efforts to consolidate macroeconomic stability through clear policies, including the implementation of Egypt's National Structural Reform Programme. She also noted the IMF's approval of the fourth review of Egypt's program and the decrease in inflation rates as factors boosting investor confidence. She added that 45.3% of government investments in the upcoming fiscal year's plan are directed towards human development, compared to 42% in the current fiscal year, with 35% for industrial development and 19% for local development. Regarding financing for development, Al-Mashat said that blended financing to stimulate private sector investments amounted to about $4.2bn during 2024, while the total concessional development financing from development partners to the private sector in Egypt from 2020 to 2024 amounted to about $14.5bn. Al-Mashat emphasized that the ministry is working to attract more development financing to the private sector through the 'HAFIZ' platform. The meeting also covered developments related to the implementation of the country platform for the 'NWFE' program and the volume of investments attracted by the platform in the renewable energy sector. Preparations are underway for the launch of Egypt's Integrated National Financing Strategy for development and the ministry's annual report for 2024. Al-Mashat underscored the strong trade and investment partnership between Egypt and the United Kingdom, with trade exchange reaching approximately £4.7bn last year. She noted the UK is one of the largest investors in Egypt through various private sector companies, and highlighted the British International Investment (BII), which has an investment portfolio of approximately £547m in 64 companies in Egypt. The event was attended by British Ambassador to Egypt Gareth Bayley, BEBA Chairperson Khaled Nosseir, former Minister of Petroleum Tarek El Molla, former Minister of Tourism Hisham Zaazou, and representatives of the business community and financial institutions. © 2024 Daily News Egypt. Provided by SyndiGate Media Inc. ( Daily News Egypt
Daily News Egypt
12-03-2025
- Business
- Daily News Egypt
Private sector now 63% of Egyptian investment, Al-Mashat says
Private sector investment now accounts for 63% of total investment in Egypt, Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat has said. Al-Mashat made the announcement during a meeting with the British Egyptian Business Association (BEBA), highlighting the shift as a key indicator of Egypt's economic progress. Speaking at BEBA's annual Sohour ceremony, she emphasized the government's aim to transition towards an economic growth model based on manufacturing, exports, and tradable sectors. Al-Mashat also emphasized that the diversity of the Egyptian economy presents significant opportunities to enhance Egypt's regional position, particularly in the energy and logistics sectors. 'We aim to shift towards an economic growth model based on manufacturing, export, and tradable sectors,' Al-Mashat said. 'Integration among Economic Group Ministries [is key] to adopt policies that enhance the confidence of the business community and the private sector and stimulate investments.' The minister pointed to the government's efforts to consolidate macroeconomic stability through clear policies, including the implementation of Egypt's National Structural Reform Programme. She also noted the IMF's approval of the fourth review of Egypt's program and the decrease in inflation rates as factors boosting investor confidence. She added that 45.3% of government investments in the upcoming fiscal year's plan are directed towards human development, compared to 42% in the current fiscal year, with 35% for industrial development and 19% for local development. Regarding financing for development, Al-Mashat said that blended financing to stimulate private sector investments amounted to about $4.2bn during 2024, while the total concessional development financing from development partners to the private sector in Egypt from 2020 to 2024 amounted to about $14.5bn. Al-Mashat emphasized that the ministry is working to attract more development financing to the private sector through the 'HAFIZ' platform. The meeting also covered developments related to the implementation of the country platform for the 'NWFE' program and the volume of investments attracted by the platform in the renewable energy sector. Preparations are underway for the launch of Egypt's Integrated National Financing Strategy for development and the ministry's annual report for 2024. Al-Mashat underscored the strong trade and investment partnership between Egypt and the United Kingdom, with trade exchange reaching approximately £4.7bn last year. She noted the UK is one of the largest investors in Egypt through various private sector companies, and highlighted the British International Investment (BII), which has an investment portfolio of approximately £547m in 64 companies in Egypt. The event was attended by British Ambassador to Egypt Gareth Bayley, BEBA Chairperson Khaled Nosseir, former Minister of Petroleum Tarek El Molla, former Minister of Tourism Hisham Zaazou, and representatives of the business community and financial institutions.
Zawya
28-01-2025
- Business
- Zawya
Egypt to bolster entrepreneurship ecosystem, accelerate economic growth
Cairo – Rania El-Mashat, Egypt's Minister of Planning, Economic Development, and International Cooperation, unveiled plans to back startups and enhance the entrepreneurship ecosystem. The Ministerial Group for Entrepreneurship reviewed ways to boost sustainable and accelerated economic growth while creating job opportunities. El-Mashat stated that the discussions would be reflected in the Startup Charter, which is currently being finalised to become a clear roadmap to improve investor confidence in the opportunities available for startups in Egypt. This aligns with the government's efforts to advance the National Structural Reform Programme, which aims at empowering the private sector and creating a favourable business environment. She stressed Egypt's commitment to supporting the entrepreneurship sector, particularly startups, amid the revolution in AI-based services. Egypt is one of the largest markets in the MEA region that offers competitive operational costs and possesses all the ingredients to become a regional hub for startups.
