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Arab Finance: The African Development Bank (AfDB) expects Egypt’s economic growth to rise to 4.4% in 2026, up from 4.1% in 2025, Hapi Journal reported, citing a recent report by the bank.
The projected growth is supported by strong inflows of foreign direct investment (FDI), particularly in port infrastructure projects, alongside the development of strategic industrial zones and continued expansion in manufacturing.
In its report, the bank said growth would also be driven by increased domestic demand and stable import costs, in addition to accelerated public investment in infrastructure, tourism, and energy.
Improved private consumption, supported by wage increases, higher remittances from Egyptians abroad, and easing inflation, is also expected to contribute to economic activity, the AfDB noted.
The AfDB projected further improvement in 2027, with growth reaching 4.6%. Inflation is forecast to decline from 14.1% in 2025 to 12.6% by the end of this year, with the average rate for 2026 and 2027 expected at around 11.9%.
The current account deficit is projected to average 4.5% over the current and following fiscal years, while the fiscal deficit is expected to narrow to 7.1% of gross domestic product (GDP) in 2026 and 5.6% in 2027, compared to 7.5% in 2025.
In March, Minister of Planning and Economic Development Ahmed Rostom revealed that Egypt’s economic growth is expected to reach between 4.9% and 5.1% in fiscal year (FY) 2025/2026 due to current regional tensions.
Rostom also indicated that the government targets an investment rate of 17% of gross domestic product (GDP) in the FY 2026/2027 plan.
In its fourth-quarter 2025 report on Egypt, French multinational universal bank BNP Paribas expected that Egypt’s real GDP would rise by 5.2% during FY2025/2026.
