Egypt’s GDP reaches 2.4%, PMI increases to 50.4 points in FY2023/2024

CAIRO – 3 October 2024: Egypt’s GDP growth reached 2.4 percent in the final quarter of FY2023/2024, culminating in an annual growth rate of 2.4 percent, a decline from the 3.8 percent growth seen in FY2022/2023, according to the Ministry of Planning and Economic Development. 

 

The Purchasing Managers' Index (PMI) climbed to 50.4 points in August 2024, surpassing the neutral mark for the first time since November 2020, primarily due to increased manufacturing activity.

 

The Suez Canal experienced significant challenges, contracting by 30 percent in FY2023/2024 compared to the previous year and shrinking by 68 percent in the last quarter. 

 

The non-petroleum manufacturing sector, contributing 11.4 percent to GDP, faced a 5.2 percent decline over the year because of economic difficulties and shortages in raw materials. 

 

However, following reforms in March 2024, the sector rebounded with 4.7 percent growth in the last quarter, marking its first positive performance since Q1 of FY2022/2023. 

 

Notable growth occurred in ready-made clothing (54.2 percent), textiles (23.8 percent), and computer and electronic products (14.9 percent).

In contrast, extraction activities, accounting for 6.7 percent of GDP, declined by 4.7 percent, particularly in crude oil and natural gas, which dropped by 1.8 percent and 13.1 percent, respectively. 

 

Oil refining activities decreased by 6.1 percent, influenced by lower production, but started to improve in the months after the fiscal year ended, as dues to foreign partners were settled.

 

Despite these challenges, several economic sectors showcased resilience, recording positive growth over the year: communications and information technology (14.4 percent), tourism (hotels and restaurants) (9.9 percent), wholesale and retail trade (6.1 percent), construction (5.7 percent), and social services (5.6 percent). Additionally, transportation and storage grew by 5.4 percent, while agriculture increased by 3.8%.

 

These sectoral developments align with projections from international institutions, anticipating Egypt’s GDP to grow by 4 percent in FY2024/2025.