CAIRO - 6 May 2026: Minister of Planing and Economic Development, Ahmed Rostom, reviewed the preliminary performance indicators of the Egyptian economy during the third quarter of fiscal year 2025/2026 during the cabinet’s weekly meeting.
Rostom said Egypt’s GDP growth rate recorded a preliminary 5 percent during the third quarter of FY2025/2026, compared to 4.8 percent during the same period of the previous fiscal year.
He noted that the achieved growth exceeded earlier expectations despite ongoing regional tensions, explaining that growth had initially been projected to slow to 4.6 percent due to geopolitical disruptions affecting supply chains and pushing oil prices higher.
The minister highlighted strong growth across several non-oil sectors during the quarter. The Suez Canal recorded growth of 23.6 percent, while the restaurants and hotels sector expanded by 8.3 percent and the construction sector grew by 5.6 percent.
He also pointed to the continued gradual recovery in Suez Canal activity, noting that maritime traffic improved steadily, allowing the canal to maintain positive growth for the third consecutive quarter despite regional instability.
Rostom added that non-oil manufacturing activity continued to post positive growth of 2.1 percent.
Industrial production, reflected in the manufacturing index, recorded strong performance across several subsectors. Wood products grew by 60 percent, motor vehicle manufacturing by 27 percent, chemical industries by 10 percent, and pharmaceuticals by 8 percent, while both paper and food industries expanded by 4 percent.
The minister also said the construction sector rebounded strongly during the quarter after contracting in the previous quarter, supported by ongoing infrastructure projects and urban expansion efforts. He noted increased sales of iron and cement compared to the same period last year.
According to Fitch Ratings, the construction sector is expected to continue expanding, with projected growth rising from 4.1 percent in FY2024/2025 to 5.6 percent in FY2026/2027, before reaching 6.6 percent in FY2027/2028.
The expected growth is supported by investments in energy projects, electricity grid upgrades, renewable energy expansion, and major industrial and urban development projects.
Rostom also noted that the contraction in the extractive industries sector has eased amid intensified drilling and exploration programs, which have recently boosted oil and gas production.
He highlighted government efforts to support foreign partners through supply facilitation measures and by settling a significant portion of outstanding dues.
These efforts helped reduce arrears owed to foreign partners from $6.1 billion at the end of June 2024 to around $700 million, with the government aiming to fully settle all remaining obligations by the end of next June.
The minister added that multiple oil and gas discoveries announced during March and April are expected to improve production levels and support stronger sector growth during the fourth quarter of FY2025/2026.
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