Egypt’s Economy Grows 5% in Q3 as IMF Sees Improving Sentiment
The IMF said growth reached 5% in Q3 FY2025/26, while portfolio inflows resumed and Egypt’s sovereign risk premium fell to its lowest since 2014.
Egypt’s economy grew 5% in Q3 FY2025/26, while growth over the first nine months reached 5.2%, according to the International Monetary Fund. Full-year growth is projected at around 4.6%.
The IMF said investor sentiment improved after earlier market turbulence, with portfolio inflows resuming and nonresident holdings of local-currency government debt recovering towards pre-shock levels. By August, Egypt’s sovereign risk premium had fallen to its lowest level since 2014.
The country also returned to international debt markets with a USD 1 billion Social Eurobond in May and a USD 500 million Samurai bond in June.
Headline inflation eased from 15.2% in March to 14.3% in June, although the IMF expects it to rise to around 16.7% in the second half of 2026.
Gross international reserves stood at around USD 64 billion at the end of January, while the current-account deficit is estimated at 4.5% of GDP for FY2025/26. Tourism, remittances and recovering Suez Canal activity helped offset higher energy import costs.
Public debt is projected at 91.1% of GDP, with gross financing needs remaining around 40% of GDP in the near term. The IMF said debt remains sustainable over the medium term, though refinancing and interest-rate risks remain elevated.
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