Economic Research

Egypt’s economy is showing further concrete signs of improvement. GDP growth hit a more than 3-year high of 5% y/y in Q2 2025 despite still-high (if easing) inflation, tight financing conditions and regional geopolitical tensions.

Inflation dropped to 12.8% in February, paving the way for interest rate cuts starting April. The CBE is expected to lower rates by 2-3% initially and by another 3-5% later in the year, easing financing costs and boosting investment.