High-frequency data indicate tentative signs of economic improvement, with the Purchasing Managers' Index rising to 50.4 points in August 2024, surpassing the neutral threshold.

The Ministry of Planning anticipates economic improvement from prudent macroeconomic measures and better public investment governance.

The decline in Suez Canal revenues represents a significant 30% decrease compared to the prior fiscal year, further exacerbated by regional geopolitical tensions.

The extraction sector also faced a 4.7% decline due to reduced oil and gas production, although recent payments to foreign companies are beginning to reverse this trend.

Despite these declines, the non-petroleum manufacturing sector recorded a 4.7% growth in the fourth quarter due to economic reforms and industry growth, although it contracted by 5.2% over the year.

Positive growth was noted in communications, tourism, wholesale and retail trade, transport, and social services, partially offsetting the overall slowdown.

As part of its commitment to the International Monetary Fund, Egypt has pledged to reduce state involvement in the economy and boost the role of private companies in exchange for an $8 billion loan.

Continued structural reforms focusing on macroeconomic stability, competitiveness, and a green transition are crucial for future economic growth.

Egypt's GDP growth rate slowed to 2.4% in the fourth quarter of the 2023/24 fiscal year, matching the annual growth rate and down from 3.8% the previous year.

This slowdown is attributed to ongoing global challenges, including geopolitical tensions, economic uncertainty, and government contractionary policies aimed at restoring macroeconomic stability.

Key factors affecting growth include escalating regional geopolitical tensions, high inflation, and elevated interest rates.

Revenue from the Suez Canal fell to $6.6 billion in 2023/24, down from $8.8 billion the previous year, largely due to attacks on Red Sea shipping by Yemen's Houthis.