Egypt’s real gross domestic product grew by 4.5% in the 2024-25 financial year, according to Finance Minister Ahmed Kouchouk on Saturday. The significant growth was boosted by accelerated reforms tied to IMF financing and increased manufacturing activity across the country. This economic performance is a notable increase from the 2.4% growth recorded in the previous year and exceeded budget predictions of 4.2%.
The Arab world’s most populous country has faced considerable economic pressure from a recent currency devaluation and the war in Gaza. Inflation, which peaked at a record 38% in September 2023, has begun to ease but still remains very high.
The government accelerated reforms under an $8 billion program with the International Monetary Fund and secured $24 billion in new investment. However, Egypt tragically lost 145 billion Egyptian pounds in Suez Canal revenues due to disruptions in the Red Sea from Houthi militant attacks.
The previous year, revenues from the vital waterway had reached a very impressive total of $7.2 billion, highlighting the recent sharp decline. The minister also said Egypt imported 4.5 million metric tons of wheat, a notable decrease from the previous year.
Egypt, which is often the world’s largest wheat importer, requires more than 8 million tons annually for its subsidized bread program. The government bought just over 3.9 million tons locally, falling short of its 4-5 million ton target this year.