This growth is attributed to targeted measures including streamlined customs clearance processes, improved access to production inputs, and enhanced industrial productivity
Egypt’s non-petroleum manufacturing sector recorded a growth rate of 7.1% in the first quarter of the 2024/25 fiscal year, reflecting the success of government-led economic reforms aimed at revitalizing the nation’s industrial base. This expansion marks the sector’s second consecutive quarter of growth, underscoring its resilience and significance in driving the broader economic recovery.
The growth is attributed to targeted measures, including streamlined customs clearance processes, improved access to production inputs, and enhanced industrial productivity. These efforts have contributed to a sustained improvement in the Industrial Production Index, which increased by 6% during the quarter after experiencing a contraction of 7.7% in the corresponding period of the previous year. Key industries such as chemicals, fertilizers, pharmaceuticals, perfumes, and ready-made garments achieved significant gains, boosting domestic production and exports.
The robust performance of the non-petroleum manufacturing sector aligns with Egypt’s overall economic trajectory. The country’s GDP grew by 3.5% in the first quarter, up from 2.7% in the same period last year, despite considerable challenges in other sectors, including a sharp 68.4% contraction in the Suez Canal sector due to geopolitical tensions.
Economic reforms introduced in March 2024 have played a crucial role in the sector’s recovery. These policies have focused on improving industrial efficiency and enhancing private sector engagement. Private investments rose 30% during the quarter, signaling increased confidence in the government’s commitment to industrial growth and economic diversification.
With fiscal year GDP growth projected to reach 4%, the non-petroleum manufacturing sector is expected to remain a vital driver of Egypt’s economic recovery. Its continued expansion not only reflects the success of reform efforts but also underscores the potential for sustained growth across the broader industrial landscape.
