Minister of Planning and Economic Development Ahmed Rostom said that the Egyptian economy recorded a growth rate of 5% during the third quarter of fiscal year 2025/2026, compared with 4.8% in the corresponding quarter of the previous fiscal year, exceeding expectations that growth could slow to 4.6% amid regional geopolitical tensions, disruptions to global supply chains, and rising oil prices.
The remarks came as Rostom reviewed Egypt’s economic performance indicators for the third quarter of FY2025/2026 (January–March 2026) during a cabinet meeting chaired by Prime Minister Moustafa Madbouly. Rostom said that manufacturing industries continued to play a pivotal role in supporting economic growth during the quarter, contributing the largest share to GDP growth at around one percentage point of the overall 5% growth rate.
The information and communications technology (ICT) sector ranked second, contributing 0.7 percentage points, followed by wholesale and retail trade with the same contribution, reflecting the diversity of growth drivers and the positive performance of several key sectors.
He added that the Suez Canal recorded strong performance during the third quarter, becoming the fastest-growing economic activity with a growth rate of 23.6%. The performance reflects the Suez Canal Authority’s success in maintaining smooth navigation and efficient maritime services despite ongoing regional tensions, underscoring the canal’s resilience and its continued vital role in global trade.
The ICT sector also maintained its strong momentum, recording growth of 20.3% during the quarter. This was driven by the expansion of telecommunications and digital technology services, as well as growing demand for internet services and digital applications, highlighting the acceleration of digital transformation and the sector’s increasing contribution to economic growth.
Rostom noted that the petroleum sector posted positive growth of 0.7% during the third quarter, marking its first positive reading since the first quarter of FY2023/2024. The improvement was attributed to higher domestic production of crude oil, condensates, and butane, signaling a recovery in the performance of the sector.
Total implemented investments reached EGP 637 billion during the third quarter of FY2025/2026, compared with EGP 531 billion in the corresponding period of FY2024/2025, an increase of EGP 106 billion. The figures reflect a notable improvement in investment activity and continued momentum across various sectors of the economy.
Regarding the distribution of investments between the public and private sectors, Rostom said indicators show a continued rise in private-sector participation. The share of private investments increased from an average of 35%–39% during FY2023/2024 to more than 50% during FY2024/2025 and remained above that level throughout the first three quarters of FY2025/2026.
He said the trend reflects the success of government efforts to strengthen the role of the private sector as the main engine of investment and economic growth. In contrast, the share of public investments declined relative to total investments, reflecting the state’s approach of redefining investment roles and creating greater space for private-sector participation in development projects and sustainable economic growth.
Rostom added that economic growth during the third quarter was primarily driven by strong household consumption, which contributed 6.1 percentage points to overall growth, compared with 4.8 percentage points in the corresponding quarter of FY2024/2025. The contribution of current government expenditure also increased to 3.1 percentage points, up from 0.3 percentage points in the comparison period, reflecting the positive role of public spending in supporting economic activity and growth.