CAIRO – Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, said that Egypt’s economy is improving, with growth expected to hit 3.8% for fiscal year 2025, rising to 4.3% in 2026.
During a press conference, the IMF official stated that this recovery comes despite global pressures and is supported by Egypt’s economic reform program, updated in March to address challenges such as reduced Suez Canal revenues.
He added that this program targets inflation control, debt management, exchange rate flexibility, and increased private sector participation. Inflation is expected to fall from 33% in FY 2024 to 19.7% in 2025, reaching 5% by 2026.
Azour noted that the direct impact of recent U.S. trade actions on Egypt is limited due to relatively low exposure, though indirect effects, such as shifts in capital flows and oil prices, require monitoring.
He reaffirmed that Egypt and other emerging economies face higher financing costs and stressed the need for sustainable policies and more efficient debt management.
Azour also pointed to the importance of regional cooperation and economic diversification, especially for oil-dependent countries, as a way to reduce exposure to external shocks.
