5.1% economic growth in Egypt 2025-2026
Reuters – Al Arabiya – The Egyptian Cabinet stated in a statement that the country’s economy grew by 5.1% in the 2025-2026 fiscal year, compared to 4.4% in the previous year, surpassing the expectations of international institutions.
Ahmed Rustom, the Minister of Planning and Economic Development, said during a cabinet meeting that the Egyptian economy achieved a growth rate of 4.7% in the fourth quarter of the 2025-2026 fiscal year. As a result, it recorded a rate higher than the expectations of international institutions, reflecting the resilience and sustainability of the Egyptian economy’s growth amid the tensions affecting the region.
He attributed the 5.1% growth in GDP to improved performance in several key sectors, notably industry, the Suez Canal, and petroleum refining. Over the past 10 years, the Egyptian economy has achieved strong and sustainable growth, except during periods marked by global crises.
He highlighted the main results of the fourth quarter, noting that non-petroleum industrial activity was the largest contributor to growth during the quarter and also for the entire fiscal year.
Telecommunications activity continued to achieve high growth rates, ranking as the second-fastest-growing sector in both the fourth quarter (24.3%) and the fiscal year. This growth resulted from rising revenues of Egyptian telecommunications companies, increased exports of digital services, improved internet indicators, and significant investments in digital infrastructure, all of which enhance the sector’s contribution to supporting the digital transformation and economic growth trajectory.
The Minister of Planning added that Suez Canal activity recorded the highest growth in the fourth quarter, continuing its recovery with a 33.8% increase, and achieved 23.3% growth during the fiscal year, following a contraction in the previous year.
He noted that petroleum refining activity grew by 22.4%, recording 8.7% growth during the fiscal year after contracting in the previous year. Extraction activity also experienced an unprecedented boom, turning positive for the first time since the second quarter of the 2022-2023 fiscal year, driven by improved performance in the oil and gas sectors.
He pointed out that the fiscal year saw a clear recovery in Suez Canal activity, making it one of the fastest-growing sectors. Additionally, telecommunications and information technology activity rebounded, while non-petroleum industrial activity continued to grow at a high rate of 9%. Petroleum refining activity also turned positive, growing by 8.7%, compared to a contraction of 1.9% in the previous fiscal year, amid increased production and maintenance of refining plants.
He added that the 2025-2026 fiscal year saw restaurant and hotel activity grow by 6.5%, maintaining a positive growth trajectory supported by continued improvement in tourism flows and demand for related services.
