Egypt’s economic recovery continues to gain momentum, with gross domestic product (GDP) reaching a more than three-year high of 5.3% in Q1 2025/2026, according to preliminary estimates released by the planning ministry on Thursday.
This figure stands well above the 3.5% growth recorded in the same period of last year and marks the fastest quarterly pace since Q1 2022.
The Ministry of Planning, Economic Development and International Cooperation said the rebound was driven by key non-oil sectors, a sign that Egypt’s broader domestic economy is pushing forward even as oil and gas activity weighs on headline output.
The performance also underpins ongoing economic and structural reforms, which analysts say have strengthened Egypt’s macro stability and restored investor confidence.
Standout sectors
Manufacturing emerged as one of the top-performing sectors during the three months ending September 2025.
Output rose 14.5% supported by large gains across several import-dependent and consumer-linked industries. Motor vehicle production jumped 50% year-on-year, chemical manufacturing grew 44%, while beverages and furniture output increased 37% and 34%, respectively.
The communications and information technology sector also advanced 14.5%, reinforcing its role as one of the country’s fastest-growing pillars outside oil. At the same time, financial intermediation, which covers credit, banking services and liquidity flows, rose 10.2%.
Tourism maintained its post-pandemic momentum, expanding 13.8% year-on-year as visitor inflows surged. Nearly 5.1 million tourists travelled to Egypt during the period, offering a sustained boost to foreign-currency earnings tied to travel, hospitality and transport.
Global credit rating agency, Fitch Solutions, expects tourism revenues to climb from $17.1 billion in 2025 to $19 billion in 2029, with the Grand Egyptian Museum’s inauguration serving as a major driver of this growth.
Despite ongoing regional tensions, the Suez Canal reported its first positive growth in over a year, with activity expanding by 8.6% in Q1 2025/2026.
By contrast, the oil and gas sector shrank 5.3%, driven by a 6.6% fall in petroleum output and a 10.9% decline in natural gas production.
For markets, the Q1 figures reinforce the Arab nation’s shifting growth mix, where non-oil sectors absorb pressure from hydrocarbons.
With inflation subdued, liquidity gradually improving in formal finance, and tourism supporting external buffers, policymakers view the quarter as evidence that reform progress has broadened the base for recovery.
