Egypt’s GDP recorded a growth rate of 2.4% during the last quarter (Q4) of FY2023/2024, bringing the annual growth rate to 2.4% compared to a growth rate of 3.8% in FY 2022/2023, according to a statement released by Ministry of Planning and Economic Development.

The Purchasing Managers' Index (PMI) rose to 50.4 points in August 2024, increasing above neutral for the first time since November 2020, driven primarily by expansion in manufacturing activities.

The Suez Canal activity was the most affected by the tensions in the region, as it recorded a contraction of 30% during FY 2023/2024 compared to the previous year, while it recorded a contraction of 68% during the last quarter of the year.

The non-petroleum manufacturing sector, contributing 11.4% to the GDP, saw a 5.2% decline over the year due to economic challenges and raw material shortages.

However, after economic reforms in March 2024, the sector experienced a 4.7% growth in the last quarter, its first positive performance since Q1 of FY 2022/2023.

This improvement was driven by significant growth in industries like ready-made clothing (54.2%), textiles (23.8%), and computers and electronic products (14.9%).

On the other hand, extraction activity contracted by 4.7%, which contributes 6.7% to the GDP, especially in the field of crude oil and natural gas, where they declined by 1.8% and 13.1%, respectively.

Oil refining activity witnessed a decline of 6.1% due to the decrease in the quantity produced from these wells, which began to improve in the months following the end of the fiscal year with the payment of dues to foreign partners.

Several economic activities have demonstrated strong resilience, achieving positive growth rates over the year. The communications and information technology sector grew by 14.4%, tourism (represented by restaurants and hotels) by 9.9%, wholesale and retail trade by 6.1%, construction by 5.7%, and social services by 5.6%. The transportation and storage sector recorded a growth rate of 5.4%, while agriculture grew by 3.8%.

These indicators are consistent with forecasts from several international institutions, which project an increase in Egypt’s GDP to 4% in the current FY 2024/2025.