The International Monetary Fund (IMF) has upgraded its forecast for Egypt’s economic growth in the current fiscal year, reflecting improved expectations for the country’s economic performance and progress under ongoing reform programs.
According to the July 2026 update of the IMF’s World Economic Outlook (WEO), Egypt’s real gross domestic product (GDP) is expected to grow by 4.6 percent in fiscal year 2026/2027, marking an increase of 0.4 percentage points compared with the Fund’s April projections.
For fiscal year 2025/2026, which has already concluded, the IMF estimated Egypt’s GDP growth at 4.4 percent.
Updated economic outlook
The IMF’s latest projections highlight a stronger growth trajectory for Egypt, supported by continued economic reforms, improved macroeconomic conditions and efforts to strengthen investment and financial stability.
The Fund also revised its outlook for the following fiscal year, with GDP growth for FY2026/2027 previously projected in April at a lower level before the latest upgrade.
Egypt has continued implementing economic measures under its cooperation framework with the IMF, including reforms aimed at improving fiscal sustainability, supporting private sector activity and enhancing resilience against external pressures.
IMF financing support
The updated growth forecast comes after Egypt and the IMF reached a staff-level agreement on the seventh review of the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF).
Amine Mati, IMF Mission Chief for Egypt, said completing the reviews would unlock additional financing under both arrangements.
The reviews would make available SDR 1.11 billion, equivalent to around $1.5 billion, under the EFF program, along with SDR 100 million, equivalent to approximately $136 million, under the RSF arrangement.
Once completed, total disbursements under the two IMF programs would reach around SDR 5.3 billion, equivalent to approximately $7.2 billion.
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Egypt inflation eases
According to data published on Thursday by the Central Agency for Public Mobilization and Statistics (CAPMAS), Egypt’s annual urban consumer price inflation decreased to 14.3 percent in June 2026, down from 14.6 percent in May.
This figure fell below the projections of analysts. A Reuters survey of 17 economists had anticipated that annual urban inflation would rise to 15.1 percent in June, citing expectations of diminishing base effects and increased food costs.
Furthermore, national inflation also moderated, with the nationwide rate falling to 12.2 percent in June from 13.0 percent in May.