Egypt’s macroeconomic outlook continued to improve in mid-2026, supported by stronger external buffers and easing inflation. Net international reserves reached a record USD 55.07 billion in June 2026, while annual headline inflation declined to 12.2% from 13.0% in May. The CBE maintained its policy rates for the third consecutive meeting, with the overnight deposit rate at 19% and lending rate at 20%.
Public-sector and investment performance also strengthened, with SCZONE revenues reaching EGP 15.9 billion in FY2025/26, exceeding its budget target by 51%. The EU additionally disbursed €1.5 billion under its Macro-Financial Assistance programme, while Egypt launched the “Egypt Starts with Exports” initiative to broaden the exporter base and strengthen export capacity.
Despite these positive developments, the widening non-oil trade deficit remains a key challenge. In H1 2026, the deficit increased 50% YoY to USD 22.6 billion, as imports grew 21% to USD 48 billion, compared with only 2.9% growth in exports to USD 25.5 billion. Looking ahead, Egypt’s priorities include export diversification, private investment, fiscal consolidation, structural reforms, and digital and industrial transformation to translate macroeconomic stability into sustainable, private-sector-led growth.
