Egypt’s economy expanded by 4.77% in the third quarter of the 2024/2025 fiscal year, up significantly from the 2.2% growth recorded in the same period a year ago, according to data from the Ministry of Planning.
The improvement was largely driven by a robust recovery in the manufacturing sector, which posted a 16.3% growth in Q3—reversing a 3.9% contraction from the corresponding quarter last year.
However, the rebound was partially offset by continued weakness in the oil and gas sector, which saw a 10.38% contraction, Reuters reported.
Despite recent discoveries and increased investment in exploration, the sector remains a drag on broader economic performance.
Egypt is striving to bolster its energy portfolio, with plans to invest $1.2 billion in 110 exploratory wells during the 2024/2025 fiscal year.
By 2030, the government aims to spend a total of $7.2 billion on drilling 586 wells. The country is also building on earlier gas discoveries, including the massive Zohr field in the Mediterranean.
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In a recent development, Egypt announced a new oil and gas discovery in the Abu Sennan brownfield in the Western Desert, potentially boosting future output.
Meanwhile, the Suez Canal—a critical source of foreign revenue—generated $900 million in the fourth quarter, down from $1.1 billion a year earlier.
Traffic through the canal dropped 23.1% in Q3, though this marked an improvement from the 51.6% year-on-year decline recorded previously.
Egypt’s economic outlook remains cautiously optimistic, supported by industrial recovery and continued investment, although the energy sector’s underperformance and declining canal revenues pose ongoing challenges.
Image Credit: ZAWYA
