Egypt to see 4% economic growth in 2025, driven by boosted confidence

Posted on April 14, 2025   |  

Egypt’s GDP growth is projected to accelerate to 4% in FY 2025, up from 2.4% in FY 2024, driven by improving confidence.

GDP growth is expected to reach 4.7% in FY 2026, supported by rising real income, though still slightly below potential growth.

The Egyptian government remains committed to the IMF program, which is focused on restoring macro-fiscal stability.

Structural reforms to boost competitiveness have been limited, with efforts like tax system rationalization and reduced tax exemptions for state-owned enterprises.

State divestment has been modest, and customs processes have improved under the government’s reform efforts.

Egypt’s government deficit is set to widen to 7.4% of GDP in FY 2025, due to last year’s one-off Ras El-Hekma revenue and high debt interest costs.

Regional conflicts have negatively impacted Suez Canal receipts, which are expected to recover to only 60% of their 2023 level by FY 2026.