RIYADH: Egypt’s gross domestic product grew by about 5.3 percent during the first quarter of the 2025/2026 fiscal year — its highest in more than three years — according to a senior official. 

Rania Al-Mashat, Egypt’s minister of planning, economic development, and international cooperation, said the acceleration in growth was driven by improvements in productive sectors, according to an official statement. 

She noted that the outlook for Egypt’s economy is increasingly positive, supported by ongoing reforms, a shift toward productive activities, and broader real-economy development. Growth is expected to reach 5 percent by the end of the fiscal year, she added. 

This also aligns with ministry data released in September showing that the economy expanded 4.4 percent in fiscal year 2024/25, supported by a strong fourth quarter when growth reached a three-year high of 5 percent. 

In a Facebook post from the Egyptian Cabinet Presidency’s handle, Al-Mashat said: “Private sector investments achieved remarkable growth of 25.9 percent, accounting for 66 percent of total investments.” 

She added: “The Suez Canal overcame contraction and achieved growth of 8.6 percent for the first time since December 2024, with the return of stability to the Red Sea region.” 

The minister noted that financial intermediation, insurance, electricity, wholesale trade, and construction activities continued to support growth in the first quarter. 

She emphasized that the government is working to improve the industrial business environment while implementing reforms to localize industry and technology. 

Growth in the communications and technology sector is being driven by a clear strategy to shift from a service-oriented model to a production-based one, supported by increased investment in outsourcing and digital exports that enhance future growth potential, Al-Mashat explained. 

She also highlighted continued momentum in the tourism sector, bolstered by rising infrastructure investment and greater private-sector involvement. Milestones such as the opening of the Grand Egyptian Museum further reinforce Egypt’s position as a growing global tourist destination, she noted.

Al-Mashat added that contraction in the extractive sector has slowed due to recent gas and oil discoveries. 

She also pointed to a clear government direction to strengthen governance of public investments, prioritize key sectors, and expand opportunities for private-sector participation. 

Stability enables reform, and reform enhances stability, consolidating the foundations of economic development, the minister said.