Arab Finance: The World Bank has upgraded its forecast for Egypt’s real gross domestic product (GDP) growth in the current fiscal year (FY) 2025/2026 to 4.6% from 4.3% projected in April, according to the June 2026 Global Economic Prospects report.

This outlook is expected to fall to 4% in FY2026/2027, before accelerating again to 4.6% in FY2027/2028.

On the regional scale, the report highlighted that growth in hydrocarbon importers is forecast to recover in FY2027/2028, driven by lower energy prices and recoveries in shipping, tourism, and remittances.

Easing inflationary pressures is expected to boost monetary policy and reinforce economic activity, with fiscal consolidation efforts expected to strengthen primary budget surpluses, particularly in Egypt, Pakistan, and Tunisia.

However, job creation is likely to remain subdued over the forecast period due to labor market challenges and structural rigidities, including low female labor force participation.

In May, the World Bank Group approved a $1 billion financing to support job creation, strengthen the country’s fiscal resilience, and advance its transition to a greener economy.

Minister of Planning and Economic Development Ahmed Rostom recently outlined economic growth rate estimates for the coming FYs, with the Egyptian economy expected to record a 5.4% growth by the end of FY 2026/2027. In line with the developed medium-term plan, the growth rate is likely to reach 6.8% at the end of FY 2029/2030.

Rostom also affirmed that the government developed a conservative growth scenario, assuming continued uncertainty in the Middle East region or globally.