Egypt reported real gross domestic product growth of 5.3 percent in the first quarter of fiscal year 2025 to 2026, marking the fastest expansion the country has seen in more than three years. According to the Planning Ministry, the improvement reflects stronger activity across key sectors and renewed confidence among private investors.
Private sector investment rose by nearly twenty six percent during the quarter and made up two thirds of total investment. Manufacturing activity outside the oil and gas sector grew significantly, with output rising in industries such as motor vehicles, chemicals, textiles, furniture and processed goods. Officials noted that these gains point to increased industrial capacity and higher domestic production.
The Suez Canal also posted an increase in activity with growth of more than eight percent during the quarter, supported by improved global shipping flows. Tourism, information technology and trade recorded additional gains, contributing to a broad based expansion across the economy.
Government officials said the stronger than expected results reflect progress in economic reforms and sustained investor interest. They added that the country is on track to meet its updated growth forecast of around five percent for the full fiscal year ending in June 2026.
Economists believe that continued stability in key sectors, together with further improvements in private sector participation, will be essential for Egypt to maintain this pace of growth in the months ahead.
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