Business Performance Index Rises in Q3 2025 Supported by Recovery in Production, Sales, and Exports Indicators

The Business Performance Index in Egypt rose during the third quarter of the current year (July - September 2025), exceeding the neutral level by 8 points with better performance than the previous two quarters and the corresponding quarter of the previous year by 7 points, according to the results of the "Business Barometer" index announced by the Egyptian Center for Economic Studies today, Wednesday.

The center attributed the increase to the recovery of production indicators, domestic sales, exports, and the utilization of production capacity across all companies and sectors.

The performance expectations index for the fourth quarter (October - December 2025) recorded values 9 points above the neutral level, better than the previous two quarters and the corresponding quarter, reflecting expectations of continued performance improvement. The survey results showed that the business performance and expectations indices for all companies exceeded the neutral level with better values than the previous two quarters and the corresponding quarter, reflecting improved performance across all sub-indicators for all companies.

By sector; the business performance index improved across all sectors during the current quarter compared to the previous quarter, with the tourism sector achieving the best performance, while the construction sector recorded the lowest performance among sectors.

The manufacturing sector recorded an increase above the neutral level by 6 points, performing better than the previous two quarters and the corresponding quarter; this is due to improvements in production, exports, and increased seasonal domestic sales in the ready-made garments and food industries sectors, reflecting reduced monetary pressures following the stabilization and availability of foreign currencies, which led to the availability of raw materials and stability in geopolitical conditions in the Middle East region.

The tourism sector recorded the best performance among sectors, achieving values 18 points above the neutral level and better than the previous two quarters and the corresponding quarter; this is attributed to the revival of inbound tourism to Egypt during the quarter under study, higher occupancy rates in hotels and tourist villages, increased demand for flight bookings, as well as increased outbound tourism due to the Umrah season, and increased domestic tourism during the summer and end of the school year. Additionally, government efforts to enhance Egypt's tourism marketing in global markets through launching large promotional campaigns, including the announcement of the opening of the new Egyptian Museum, contributed to this performance.

Regarding the main challenges and priorities from the business community's perspective; the current quarter witnessed a worsening of obstacles related to the difficulty of obtaining qualified labor, especially in the telecommunications sector, while obstacles related to unclear future economic policy directions declined, and there was slight improvement in the tax and customs systems.

Inflation and rising energy and water costs continued to top the list of obstacles faced by all companies.

Small and medium-sized enterprises still face greater challenges compared to large companies, especially regarding the tax system and difficulty in obtaining qualified labor. The telecommunications sector faces the highest number of challenges compared to other sectors, including difficulty in obtaining qualified labor, challenges in the tax system, and financing difficulties.

It is worth noting that the "Business Barometer" index is a periodic assessment report conducted by the Egyptian Center for Economic Studies every three months for a sample of 120 private sector companies covering various sectors and sizes. It reflects the business community's opinion on developments in a set of variables, specifically production, domestic sales, exports, inventory levels, production capacity utilization, prices, wages, employment, and investment.