Egypt’s GDP to rise to 4.3% in FY2025/26 – World Bank

Egypt’s GDP is set to grow by 4.3 per cent in the 2025/26 fiscal year and 4.8 per cent in the 2026/2027 year, the World Bank said in its Global Economic Prospects, January 2026 report.

“In Egypt, growth is forecast to strengthen to 4.6 percent a year, on average, in FY2025/26 (July 2025 to June 2026) and FY2026/27, with robust net exports. Additionally, softening price pressures and easing global financial conditions will support private consumption, while private investment is projected to be solid, backed by monetary easing and continued structural reforms” the World Bank’s report said.

“Private demand has been boosted in the Arab Republic of Egypt by the easing of import and foreign exchange restrictions,”

As an oil-importing emerging market in the Middle East, North Africa, Afghanistan and Pakistan region, Egypt is projected to benefit from regional growth in oil importers, expected at around 4 per cent in 2026–27 amid easing inflation.

Fiscal deficits are forecast to narrow in 2026–27, reflecting Egypt’s contractionary fiscal policies alongside Morocco, Tunisia, and the West Bank and Gaza, while the current account deficit is expected to shrink, supported by rising tourism receipts and remittances.

The World Bank cautioned that Egypt remains vulnerable to global financial tightening, noting that a sharp decline in global risk appetite could trigger capital outflows and currency depreciation given elevated fiscal and external vulnerabilities.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser