A view of Cairo, Egypt, with the city's skyline and historic mosques in the foreground. Credit: File photo

NNA News - Egypt's economy grew by 5.1 per cent in the 2025/26 fiscal year, accelerating from 4.4 per cent a year earlier and exceeding the International Monetary Fund's earlier forecast, according to the Egyptian government.

The figures were presented by Planning and Economic Development Minister Ahmed Rostom during a Cabinet meeting chaired by Prime Minister Mostafa Madbouly on Thursday. The economy grew by 4.7 per cent in the fourth quarter, bringing full-year growth to 5.1 per cent. "The Egyptian economy achieved a growth rate of 4.7 percent in the fourth quarter of the 2025/2026 fiscal year, bringing the growth rate for the fiscal year as a whole to 5.1 percent," Rostom said.

Rostom said the performance reflected stronger activity across several sectors and resilience despite regional tensions. "This reflects the resilience and sustainability of the Egyptian economy's growth amid the regional tensions," he said. Manufacturing, trade and telecommunications were among the main contributors, together accounting for 48 per cent of total economic growth during the fiscal year.

Non-petroleum manufacturing expanded by 9 per cent, while petroleum refining grew by 8.7 per cent, reversing a 1.9 per cent contraction recorded in the previous fiscal year. The improvement in refining was attributed to higher production and refinery maintenance. The Suez Canal also recorded a significant recovery. Activity grew by 33.8 per cent in the fourth quarter and 23.3 per cent over the full fiscal year, following a contraction in the previous year linked to disruptions to shipping through the Red Sea.

The telecommunications sector remained another strong performer, expanding by 24.3 per cent in the fourth quarter. Rostom attributed the growth to higher revenues from telecommunications companies, increased digital services exports, improved internet indicators and investment in digital infrastructure. The latest figures were stronger than the IMF's July projection. In its July 30 review of Egypt's economic programme, the IMF had expected real GDP growth of about 4.6 per cent for FY2025/26 after growth reached 5 per cent in the third quarter and 5.2 per cent over the first nine months.

Egyptian officials and representatives attend a government meeting in Cairo, Egypt. Credit: Egyptian government

The IMF said Egypt had entered the period of regional conflict from a stronger macroeconomic position and that the impact of the war in the Middle East on the economy had remained relatively contained. "Egypt entered the period of the war in the Middle East from a solid macroeconomic position, reflecting substantial progress in restoring stability and rebuilding buffers under the Fund-supported program," said Nigel Clarke, the IMF's deputy managing director and acting chair.

He said continued fiscal discipline and structural reforms would remain important for maintaining stability and strengthening the economy's resilience. The IMF nevertheless expects growth to moderate to 4.4 per cent in FY2026/27, citing the lagged effects of regional conflict, higher input costs and continued uncertainty. It also identified renewed regional tensions and slower structural reform as risks to Egypt's economic outlook.

The stronger-than-expected FY2025/26 performance comes as Egypt seeks to expand productive activity, attract investment and strengthen the contribution of non-oil sectors to economic growth.