The International Monetary Fund (IMF) has raised its forecast for Egypt’s economic growth to 5.1% in fiscal year 2025/2026, up from 4.4% growth in the previous fiscal year, before moderating to 4.7% in FY2026/2027, according to the IMF’s latest World Economic Outlook report.

On inflation, the IMF revised its forecast downward to 13.3% for FY2025/2026, compared with 20.4% in the previous fiscal year, before projecting a slight increase to 14.8% in FY2026/2027.

The Fund also expects Egypt’s current account deficit to reach 4.4% of GDP in FY2025/2026, widening slightly to 4.5% in FY2026/2027.

Globally, the IMF projects economic growth to slow to 3.1% in 2026, down from 3.5% in 2025, before recovering to 3.4% in 2027.

Meanwhile, the Middle East and Central Asia region is expected to experience a 0.3% economic contraction in 2026, followed by a recovery to 6% growth in 2027.