The Economic Pulse

Economic pulse-August 2026

Egypt’s macroeconomic position remained resilient in July 2026, supported by stronger external buffers and monetary stability. Net international reserves rose to a record USD 56.29 billion, while the CBE maintained interest rates at 19% for deposits and 20% for lending. However, inflation increased to 13.0% from 12.2% in June, indicating renewed price pressures.

Private-sector activity remained subdued, although the PMI improved to 46.8 from 46.0, marking the seventh consecutive month of contraction. Meanwhile, processed food exports reached a record USD 4.47 billion during January–July 2026, up 11% year-on-year, with Arab countries and the EU accounting for the largest shares of export destinations.

Policy measures continued to focus on supporting exports, investment, and digital transformation. Egypt signed 17 export contracts worth USD 168 million with Chinese companies, extended the Export Burden Rebate Programme through December 2026, and introduced new digital financial identity (eKYC) rules. Looking ahead, inflation is expected to remain elevated in Q3, while the government prepares a post-IMF economic programme focused on structural reforms, investment, and private-sector-led growth.