Egypt’s economy is set to grow 4.6% in the fiscal year to next June, boosted by falling inflation and interest rates. A Reuters poll of 16 economists projects growth will accelerate to 4.9% in 2026/27 and 5.3% by 2027/28. The economy slumped to 2.4% in 2023/24 but rebounded sharply after March 2024, following currency devaluation and interest rate hikes.
Egypt’s $8 billion IMF support package helped stabilise finances and spurred exports, tourism, and remittances from Egyptians working abroad. February 2024 saw a $35 billion Abu Dhabi real estate investment at Ras El Hekma, further energising economic activity along the coast.
The central bank reported 5.0% growth in the second quarter of 2025, up from 4.8% in the first quarter, reflecting stronger momentum. Lower inflation and looser monetary policy are boosting domestic manufacturing, while improved external competitiveness is aiding Egypt’s export sector, analysts said.
Annual inflation has slowed from 38.0% in September 2023 to 11.7% in September 2025, despite recent government hikes on petroleum products. The central bank’s overnight lending rate, now at 22.0%, is forecast to ease to 16% by next June and 11.25% by 2028.
Economists predict the Egyptian pound will weaken to 49.85 per dollar by mid-2026, reaching 54.00 by the end of June 2028. Continued reforms, foreign investment, and tourism inflows are expected to drive growth, even as Egypt navigates inflation pressures and currency fluctuations.