Egypt's GDP growth rate surged to 4.3% in the second quarter of the 2024/25 fiscal year, a notable increase from 2.3% during the same period last year.

This growth was primarily driven by key sectors such as non-oil manufacturing, which grew by 17.7%, tourism at 18%, and information and communication technology (ICT) at 10.4%.

The non-oil manufacturing sector has shown positive growth for three consecutive quarters, rebounding from a contraction of 11.5% the previous year, thanks to increased private investment and higher merchandise exports.

Private investment has consistently outpaced public investment for the second consecutive quarter, accounting for over 50% of total investments despite geopolitical tensions affecting the Suez Canal.

Net exports also contributed positively to GDP growth for the first time since the first quarter of FY2023/2024, bolstered by a rise in goods and services exports, particularly in tourism.

Dr. Rania Al-Mashat, Minister of Planning, highlighted the positive impact of corrective fiscal and monetary policies on GDP recovery.

However, the extraction sector continues to decline, with oil production down 7.5% and natural gas down 19.6%, although future investments are expected to support recovery.

Government policies aimed at restoring macroeconomic stability and enhancing private sector participation have resulted in a remarkable 35.4% increase in private investment during the second quarter.

Ongoing reforms and a strategic transition to a tradable economy are enhancing Egypt's resilience to global economic challenges, supporting a positive overall economic outlook.

The recovery is linked to a reduction in public investment, which aims to consolidate macroeconomic stability and improve the business environment.

The fiscal year began on July 1, 2024, indicating that the recent growth reflects the latest economic activities.

Structural reforms are diversifying Egypt's growth sources and increasing economic competitiveness, particularly in manufacturing, tourism, and telecommunications.