Egypt's Economy Grows 3.5% in Q1 2024

Egypt's economy is projected to grow between 3.5% and 4.5% in 2025, following a recovery from a challenging previous year marked by global economic slowdowns and geopolitical tensions. The International Monetary Fund (IMF) forecasts a 4% growth, spurred by ongoing economic reforms and significant projects like the Ras Al-Hekma development. In the first quarter of the 2024/2025 fiscal year, real GDP growth reached 3.5%, up from 2.7% the previous year, driven by strong performance in key sectors such as non-petroleum manufacturing (7.1% growth) and transportation (15.6% growth). The tourism sector also rebounded with an 8.2% increase, aided by government initiatives and a rise in tourist activity. However, the Suez Canal revenues plummeted by 68.4% due to decreased vessel traffic amid geopolitical issues, and the extraction sector faced contractions. Overall, the positive economic indicators, including a drop in unemployment to 6.5%, suggest a gradual recovery fueled by reforms and increased investments.