Egypt’s economic policy steps helped absorb Iran war shock: IMF’s Azour

Egypt has taken early and decisive measures to strengthen its economy and limit exposure to external shocks linked to the Iran war, the Director of the Middle East and Central Asia Department, International Monetary Fund (IMF), Jihad Azour, said.

 

Azour said Egypt’s policy response has been “notable” in addressing spillovers from the conflict, speaking at the launch of the IMF’s April 2026 Regional Economic Outlook during the Spring Meetings of the IMF and World Bank.

 

He highlighted exchange rate flexibility as a key factor helping the economy absorb global volatility, adding that recent policy actions have improved resilience to external pressures.

 

Azour noted that the Iran conflict has already fed through to the region via higher commodity prices, supply chain disruptions, rising fuel costs, and financial market instability.

 

He added that governments have increasingly applied lessons from previous crises, including the Ukraine war, by adopting more targeted fiscal support aimed at vulnerable households rather than broad subsidies.

 

According to Azour, Egypt’s management of the initial shock has helped support investor sentiment, contributing to renewed foreign capital inflows into domestic markets.