IMF Expects Egypt's Economy to Grow by 4.1% in 2026

The January 2025 World Economic Outlook report issued by the International Monetary Fund (IMF) revealed a significant improvement in growth expectations for the Egyptian economy, as it expects to achieve growth of 4.1% in 2026.

This expected growth is driven by a package of structural reforms adopted by the Egyptian government, and increased investments in major infrastructure projects.

The report indicated that the Middle East region is witnessing profound economic transformations amid a complex geopolitical landscape. 

While the Gulf Cooperation Council countries, led by the UAE and Qatar, continue to implement ambitious strategies for economic diversification, with a special focus on renewable energy, advanced technology and artificial intelligence, other countries in the region face more difficult challenges.

The UAE stands out as a successful model in this context, as it invests heavily in clean energy projects and sustainable infrastructure; which enhances its position as a regional economic hub.

In contrast, Iran faces increasing economic difficulties as a result of international sanctions and internal challenges; which negatively affects growth rates and investment opportunities.

The report pointed out that the global economic landscape is characterized by an imbalance in growth rates between different regions, with global growth expected to reach 3.3% in 2025. 

The United States is showing remarkable economic resilience, with its economy expected to grow by 2.7%, supported by a strong labor market and high levels of consumer spending. 

The report revealed that the European Union (EU) faces structural challenges, especially with the slowdown in the performance of the German economy, the main driver of European growth, due to declining industrial production and rising energy costs, and these challenges are exacerbated by the continued impact of previous crises on global supply chains and international trade.