Egypt’s economy posted stronger growth in the 2024-25 financial year despite severe external shocks and domestic pressures. Finance Minister Ahmed Kouchouk announced Saturday that real GDP expanded 4.5 percent, rising from 2.4 percent a year earlier.
He credited reforms under an $8 billion IMF programme and increased manufacturing activity for the improvement, which exceeded the 4.2 percent official forecast. The government also secured $24 billion from the United Arab Emirates’ sovereign wealth fund, including a Mediterranean land deal, to boost stability.
Egypt, the Arab world’s most populous country, has struggled with a March 2024 currency devaluation, surging inflation, and fallout from the Gaza war. Inflation peaked at a record 38 percent in September 2023, then eased to 13.9 percent in July, down from 14.9 percent in June.
Kouchouk, presenting financial results, said Egypt lost 145 billion Egyptian pounds ($2.99 billion) in Suez Canal revenue during the fiscal year. Revenues fell sharply to $4.2 billion as Houthi attacks on shipping disrupted Red Sea traffic, compared with $7.2 billion the year before.
Egypt also imported 4.5 million metric tons of wheat at a cost of $1.2 billion, down more than 21 percent from last year. The country, traditionally the world’s largest wheat importer, requires over 8 million tons annually to provide subsidised bread for 70 million citizens.
Domestic procurement reached just 3.9 million tons, missing the government’s 4–5 million ton target, raising concerns about future food security. Despite headwinds, the growth figures suggest Egypt is regaining momentum, though fragility remains as external risks continue to weigh heavily.
