Arab Finance: The World Bank has kept Egypt’s economic growth forecast for the current fiscal year (FY) 2025/2026 unchanged at 4.3%, as per the bank's latest regional economic update.

“In Egypt, the 2026 forecast is driven by robust growth in the first half of the fiscal year, resilient private consumption, and growing private investment, offset by slower moderation of inflation due to the conflict,” the World Bank said in its report.

The report also showed that Egypt's inflation is projected to reach 13.6% in FY2025/2026, while the current account deficit is forecast at 4.2% of gross domestic product (GDP).

Recently, Allianz Research's Economic Outlook 2026–2027 report showed that Egypt's economic growth is forecast to slow slightly at 4% in 2026 before accelerating to 5% in 2027. This places Egypt among the more stable performers in a region where overall Middle East growth is projected to contract by -1.0% in 2026 due to the ongoing US-Iran conflict.

Last month, Minister of Planning and Economic Development Ahmed Rostom said that Egypt’s economic growth is projected to reach between 4.9% and 5.1% in FY2025/2026 due to current regional tensions.

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.

It is worth noting that the state’s economy grew to 5.3% in the second quarter (Q2) of FY2025/2026, marking its highest growth since Q3 FY2021/2022.