Egyptian Economy Recover Over the Next 5 Years

Egyptian Economy in 2025

The Egyptian Economy in 2025: Recovery, Transition, and Growth

As the Egyptian state continues to confront the repercussions of global crises, the Egyptian economy continues to thrive with the launch of numerous promising investment projects, while taking measures and procedures to maintain economic stability against the backdrop of high hopes and international and local expectations.

Experts predict that 2025 will witness a recovery for the Egyptian economy and the Egyptian Stock Exchange, and an influx of more direct investment following the implementation of the IPO program. The International Monetary Fund (IMF) in its latest report forecasts that Egypt's budget deficit will decline to 5% of GDP in 2025, with a primary surplus reaching 2.5%.

Or the expected investments, which could exceed 12 billion, and may double with the anticipated occurrence of major deals similar to the Ras El-Hikma project. The state is also expected to make significant strides in adding the largest percentage of agricultural land, targeting an additional 4 million feddans, to increase our ability to achieve self-sufficiency and export abroad.

Standard & Poor's said that Egypt has been able to withstand global crises thanks to prudent monetary and fiscal policies, stressing that "the sustainable growth of the Egyptian economy reflects strong reform and crisis management efforts." A World Bank report indicated that Egypt has become a major destination for foreign direct investment in the Middle East and North Africa region, predicting that investments will reach more than $12 billion annually starting in 2025.

Projections indicate that Egyptian industrial production is poised to achieve a significant boom, with its value expected to reach $90 billion in 2025, compared to $75 billion in 2023. This growth reflects the expansion of manufacturing industries, a focus on high-value-added industries, and the modernization of production lines in new industrial complexes, such as the textile city project in Mahalla al-Kubra and the heavy industry complexes in Ain Sokhna.

Projects such as the electronic chip factory in Badr City could also contribute to transforming Egypt into a regional hub for technology industries. Among the projects set to begin production soon are chemical industries and an electric vehicle production complex in 6th of October City.

The Suez Canal: The Lifeline of the Economy

According to a recent Bloomberg report, the Suez Canal expansions and surrounding logistics projects "are strengthening Egypt's position as a global trade hub." Canal revenues are expected to reach $12 billion by 2025, with signs of a resolution to the crisis caused by the repercussions of the war on Gaza and the instability in the Red Sea. This growth will be supported by initiatives such as the expansion of the waterway and the establishment of logistics centers in East Port Said and Sokhna, which will contribute to accelerating trade flow and enhancing the canal's global competitiveness. The implementation of multimodal transport projects will also improve trade flow, boosting expected revenues.

Logistics Center

With the ongoing development of ports such as Alexandria, Damietta, and Sokhna, the Egyptian logistics sector is expected to become a global trade hub. The launch of the expanded Sokhna Port in 2025 will enhance Egypt's competitiveness as a logistics hub, supported by plans to connect it to the railway network and internal transport networks, which will contribute to reducing shipping costs and increasing trade efficiency. 

Positive Growth

International economic institutions are optimistic about the Egyptian economy's path to a brighter future, supported by strategic reforms and effective international partnerships. As the country prepares to welcome 2025, expectations remain promising for further growth and prosperity, strengthening Egypt's position as an influential regional economic power.