Egypt's Q1 GDP Growth Accelerates to 5.0% as Inflation Eases Despite US-Iran Tensions
Updated
Updated · kuwaittimes.com · Jul 27
Egypt's Q1 GDP Growth Accelerates to 5.0% as Inflation Eases Despite US-Iran Tensions
2 articles · Updated · kuwaittimes.com · Jul 27
Summary
Egypt’s economy grew 5.0% year on year in Q1 2026, up from 4.8%, with household consumption leading gains and tourism, construction, refining and Suez Canal services all expanding strongly.
June PMI fell to 46 from 47.1, the weakest since January 2023, showing the US-Iran conflict and supply disruptions are still hurting non-oil private activity, new orders and employment.
Urban inflation slowed for a third straight month to 14.3% in June, including a 0.4% monthly decline, helping the central bank keep rates unchanged at 19% for deposits and 20% for lending.
External strains persisted as the current account deficit widened to $14.6 billion in the first nine months of FY25/26 and the pound ended H1 down 3.3% against the dollar despite June debt inflows.
Even with those risks, the report expects growth to edge above 5% in FY26/27, supported by lower inflation, stronger investment and continued fiscal and exchange-rate reforms.