Egypt’s Economy in 2026: Record Reserves, Weaker Pound, IMF Deadline
Egypt's inflation eased to 14.5% and reserves hit a record US$57.2 billion, but the pound has slid to about 52.3 per US$ and the US$8 billion IMF programme ends on 15 December. The post Egypt’s Economy in 2026: Record Reserves, Weaker Pound, IMF Deadline appeared first on The Rio Times .
Egypt's economy shows signs of stabilization, with record reserves and a weaker pound, but faces challenges as the IMF program nears its deadline. Inflation has eased, reaching 14.5% in August, while the Central Bank of Egypt (CBE) keeps interest rates high to control inflation risks. The pound has weakened 8% against the US dollar since February, losing about 1.2% in October alone.
The government aims to bring inflation down to 7% by the second half of 2027. Egypt's external debt stands at around $164.8 billion, with a budget deficit of 5.3% of GDP. The Suez Canal, a key source of income, has shown recovery but has not fully returned to pre-war levels. The IMF has released about $1.8 billion under its EFF loan, with more expected in the fourth quarter. Debt service has consumed 71.2% of state revenue, posing a significant challenge.
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