The Minister of Planning reviews the performance of the Egyptian economy during the third quarter of the current fiscal year

The global economy has recently been exposed to severe fluctuations and successive geopoliticaltensions, and therefore the importance of adopting economic policies capable of enhancing the flexibility of the national economy and enabling it to deal with external shocks efficiently emerges.

From this standpoint, the Egyptian state has intensified its efforts in recent years to improve the performance of the Egyptian economy, by diversifying sources of growth, supporting productive sectors, and improving the investment environment, in addition to expanding infrastructure projects that represent a basic basis for any sustainable economic start.

These efforts aim to achieve high growth rates in addition to building a more cohesive and stable economy, capable of continuing to achieve positive performance even in light of crises. This trend gains special importance in light of its direct connection to the goals of sustainable development, as it contributes to supporting comprehensive economic growth, enhancing the efficiency of resource use, and creating job opportunities, thus establishing the foundations of long-term development based on a balance between economic stability and the ability to adapt to global changes.

Review of the performance of the Egyptian economy

In turn, Dr. Ahmed Rostom, Minister of Planning and Economic Development, reviewed during the Cabinet meeting, chaired by Dr. Mostafa Madbouly, at the government headquarters in the New Capital, the performance results of the Egyptian economy during the third quarter of the fiscal year 2025/2026 (January - March 2026).

The Minister of Planning indicated that the growth rate of the gross domestic product “tentatively” recorded a growth of 5% during the third quarter of the fiscal year 2025/2026, compared to the previous fiscal year, which recorded 4.8%, explaining that this achieved growth is higher than expected growth for this quarter due to the current crisis, as it was expected to decrease to 4.6% as a result of the tensions the region is witnessing that affected supply chains and contributed to the rise in prices. Oil.

This performance reflects the ability of the Egyptian economy to maintain a stable pace of growth, consistent with Goal (8) of the Sustainable Development Goals (SDGs) on economic growth and decent work, especially in light of increasing external pressures.

The Minister indicated that the third quarter of the fiscal year 2025/2026 witnessed remarkable growth in various non-petroleum activities, as the growth rate in the Suez Canal increased by 23.6%, the restaurants and hotels sector by 8.3%, in addition to the construction sector, which achieved a growth of 5.6%.

Suez Canal recovery and manufacturing activity

In the same context, Dr. Ahmed Rostom pointed out the continued partial recovery of the Suez Canal activity, explaining that the Suez Canal witnessed a gradual recovery in its navigational movement, and continued to achieve a positive growth rate for the third consecutive quarter amounting to 23.6%, in light of the regularity of navigational movement and the continuation of providing various navigational services, despite regional tensions, which reflects the great success in improving the performance of the Egyptian economy.

The Minister also indicated, during his presentation, that non-petroleum industry activity continued to achieve positive growth of 2.1%, explaining that industrial production, which is reflected in the manufacturing index, witnessed an increase in some sub-industries, as the wood industry achieved positive growth by 60%, and the motor vehicle industry by 27%, while the chemical products industry recorded a growth of 10%, and the pharmaceutical industry by 8%, as for paper industries. And the food industries achieved a growth rate of 4%.

The growing contribution of non-petroleum sectors confirms the state’s direction towards improving the performance of the Egyptian economy, in a way that enhances the sustainability of growth and reduces dependence on traditional sectors, within the framework of achieving goal (9) related to strengthening industry, innovation and infrastructure.

Growth of construction activity

Dr. Ahmed Rustom indicated, during the presentation, that construction activity witnessed a growth of 5.6%, during the third quarter of the fiscal year 2025/2026, after recording a contraction during the previous quarter, and the achieved growth is due to the continued implementation of infrastructure projects and urban expansion, noting in this regard the growth witnessed in iron and cement sales during this quarter compared to the same period of the previous fiscal year.

In this context, the Minister noted that the growth achieved in construction activity came in light of international institutions’ expectations of significant growth for the sector, as Fitch Ratings expects the sector’s growth rate to rise from 4.1% in the fiscal year 2024/2025, to 5.6% in the fiscal year 2026/2027, then to 6.6% in the fiscal year. 2027/2028.

The growth of the construction sector also reflects the continued expansion of infrastructure projects, which represent a basic pillar for improving the quality of life and supporting sustainable urban development, which is directly linked to Goal (11) of sustainable cities and communities.

The performance of the Egyptian economy is being improved through increasing investments in energy projects, modernizing the electrical network, and expanding renewable energy, as well as large-scale projects in the areas of mixed-use industrial and urban development, which contribute to meeting the growing demand for residential, commercial, and service spaces.

In a related context, the Minister noted that the disclosure of a large number of petroleum discoveries and gas field discoveries during the months of March and April will contribute to improving production, and then be reflected in the performance rates of the Egyptian economy with this activity during the fourth quarter of the fiscal year 2025/2026.

In conclusion, it is clear that the performance of the Egyptian economy during the third quarter of the fiscal year 2025/2026 (January - March 2026) is moving towards a more balanced model that relies on diversifying sources of income and enhancing the contributions of productive sectors, which reduces the severity of vulnerability to external fluctuations. The continued growth in non-petroleum activities, in parallel with the recovery of vital sectors such as the Suez Canal and construction, reflects an improvement in the structure of the economy and its ability to redistribute the sources of power within it more efficiently.

The Earth Guards Foundation confirms that this performance is closely linked to a broader path aimed at consolidating the principles of sustainable development, by supporting comprehensive growth (Goal 8), promoting industrialization and innovation (Goal 9), expanding infrastructure and urban development (Goal 11), in addition to moving towards more energy. Sustainability.