CAIRO - 3 June 2026: Egypt’s economy is expected to remain on a solid growth path, though momentum is forecast to ease slightly in the coming years, according to the European Bank for Reconstruction and Development (EBRD).
The bank projects growth slowing from 5.1 percent in 2025 to 4.9 percent in 2026 and 2027, as structural challenges continue to weigh on activity. These include declining domestic oil and gas production and a rising reliance on imported natural gas, which now accounts for roughly one-third of Egypt’s energy needs.
Inflation reached 15.2 percent in March 2026, driven primarily by higher food and energy costs. In response, the Central Bank of Egypt kept its benchmark interest rate unchanged at 19.5 percent in April, while foreign reserves rose to $52.8 billion, supported by ongoing IMF-backed programmes.
In its latest Regional Economic Prospects report, the EBRD said growth in the southern and eastern Mediterranean (SEMED) region is set to ease to 2.5 percent in 2026, before strengthening to 4.2 percent in 2027.
The report highlights rising regional headwinds, including disrupted trade routes and elevated energy prices amid geopolitical tensions. While remittances and tourism continue to provide support in several economies, the impact of uncertainty is uneven across the region.
The EBRD warned that prolonged instability could weigh on investment, tourism and trade, particularly in countries with limited fiscal space and high debt burdens, even as others remain more resilient due to stronger external buffers.
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