From Contraction to Take-off.. Non-Oil Manufacturing Industries Lead Economic Growth in Fiscal Year 2024/2025

12.6% sector contribution to the GDP value for FY 2024/2025... the highest contribution to the growth rate at 1.7 percentage points.

 

The Ministry of Planning, Economic Development, and International Cooperation announced the GDP growth data for the fourth quarter and the last Fiscal Year 2024/2025. The indicators showed an increase in Egypt's GDP growth rate during the fourth quarter of FY 2024/2025 to 5%, compared to a growth rate of 2.4% in the corresponding quarter of the previous fiscal year. Consequently, the growth rate for FY 2024/2025 reached 4.4%, which is higher than preliminary expectations.

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, emphasized that the positive development in the Non-Oil Manufacturing Industries sector is due to the initiatives provided by the state to promote the industrial sector. These include the initiative to support priority industrial sectors to finance production lines and purchase machinery and equipment through the provision of support loans, in addition to the initiative to support small and medium enterprises (SMEs), and other initiatives for the sector.

The Non-Oil Manufacturing Industries sector witnessed a remarkable development over the last fiscal year, shifting from contraction to recovery and growth over the year, and leading the growth rates achieved throughout the past fiscal year.

The sector began achieving positive growth during the last quarter of the year before last, FY 2023/2024, registering 4.7% for the first time since the first quarter of FY 2022/2023. This reflects the effectiveness of government policies implemented since March 2024, the customs release procedures for production inputs, and structural reform policies in various sectors, including industry.

During the last Fiscal Year 2024/2025, the Non-Oil Manufacturing Industries sector achieved positive growth of 7.1% in the first quarter of the year, then 17.7% in the second quarter, followed by 16% in the third quarter, before achieving a record growth of 18.8% in the fourth quarter of the year. The total growth over the year thus reached about 14.7%, compared to a contraction of 5.2% in FY 2023/2024.

As a result, the contribution of Non-Oil Manufacturing to the value of GDP reached 12.6% during this year. It is also the sector with the highest contribution to GDP growth, contributing approximately 1.7 percentage points of the total 4.4% growth.

It is worth noting that this positive performance reflects what the government seeks to achieve through “Egypt’s Narrative for Economic Development: Reforms for Growth, Jobs & Resilience”, to transition towards the new economic model focused on macroeconomic stability and a shift towards higher-productivity sectors. The components of growth were consistent with the orientation towards maximizing the contribution of tradable sectors and sectors with high added value, thus confirming the feasibility of the reform path adopted by the state.