IMF sees Egypt accelerating toward 2026 recovery as inflation eases, regional peace takes hold

Brooks made her remarks in answer to Ahram Online's question on the key drivers behind upgrading Egypt’s real GDP growth in its latest World Economic Outlook (WEO) report released on Tuesday. This took place in a press conference the fund organised on Tuesday to launch the report.

Brooks attributed the upgrade to notable improvements in Egypt’s non-oil manufacturing, tourism, and telecommunications sectors. “The buoyancy in these sectors has more than offset declines in Suez Canal activity and mining and extraction.”

Looking ahead, Brooks expects stabilization in the Suez Canal and mining sectors, alongside continued strength in Egypt’s key growth drivers. 

“Going into 2026, we anticipate sustained expansion in the sectors that have led the recovery so far,” she added.

On inflation, Brooks noted a favourable development: in August, Egypt’s inflation rate fell to its lowest level in 40 months. She credited the decline to tight monetary and fiscal policies, easing foreign exchange shortages, and the fading impact of currency depreciation.

“These factors have helped anchor inflation expectations and support macroeconomic stability,” Brooks said, adding that further details on Egypt’s outlook will be discussed during regional press briefings later this week.