Cairo – August 10, 2025: The Arab Monetary Fund (AMF) anticipates that Egypt's economic growth will accelerate over the coming two years, supported by more relaxed monetary policies and increased investment flows. In its Arab Economic Outlook Report 2025, the AMF projects the country’s GDP will rise by 4.2% in 2025, followed by a further increase to 4.7% in 2026.
The Fund attributes this momentum to recent economic reforms, including Egypt’s 2024 shift from a fixed exchange rate to a market-determined currency regime—a move that has helped stabilize external finances and attract foreign capital.
The report highlights Egypt’s economic resilience amid ongoing global uncertainty and regional tensions.
The country’s diversified exports and robust services sector, alongside continued financial support from Gulf states and Western partners, have all contributed to sustaining its recovery path.
Inflation, which spiked to 35.4 percent in 2023 following a series of currency devaluations, is projected to decline to 17.9 percent in 2025 and further to 11.9 percent in 2026.
The AMF credits the Central Bank of Egypt’s efforts in managing inflation and the gradual strengthening of the Egyptian pound, alongside easing global commodity prices, for the improved outlook.
The report also points to inflationary pressures in 2023 and early 2024 that were exacerbated by the pound’s weakness and the country’s reliance on imports. However, by 2024, inflation had eased significantly, setting the stage for continued moderation.
At the regional level, the AMF projects economic growth across Arab countries to reach 3.8 percent in 2025, up from 2.2 percent in 2024, supported by macroeconomic reforms and increasing demand. Over the medium term, growth across the region is expected to rise to around 4.3 percent.
The AMF’s projections reflect cautious optimism, underpinned by structural adjustments and efforts to boost investment and stability in Egypt and the wider Arab world.
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