Egyptian Economy Grows 5.3% in Q1 2025/26, Pound Stable at 47.54 per Dollar

Cairo – Wednesday, December 25, 2025

Egypt’s economy posted strong growth of 5.3% in Q1 of fiscal year 2025/26, doubling the 2.7% recorded a year earlier, according to Planning Minister Rania Al-Mashat. This performance reflects notable progress in the economic reform program conducted in cooperation with the IMF, which announced a staff-level agreement on December 22, 2025, covering the fifth and sixth reviews of the Extended Fund Facility.

Al-Mashat projects at least 5% growth for the full fiscal year, supported by ongoing structural reforms. The IMF’s latest report confirmed that economic activity accelerated beyond previous forecasts of 4.3–4.5%.

The Egyptian pound remained relatively stable in recent weeks, trading at 47.54 per US dollar, with the euro at approximately 49.80 EGP and the British pound at 60.20 EGP, according to Central Bank data as of December 24, 2025. The IMF noted a significant improvement in the balance of payments, with a narrowing current account deficit and rising remittances.

Gold prices in Egypt surged over the past week, with 24-carat gold trading between 6,740–6,817 EGP per gram, and 21-carat gold at 5,898–5,965 EGP. Silver prices ranged from 1,991–2,000 EGP per ounce. Prices include workmanship and taxes. The basic price for 24-carat gold stood at about 4,100 EGP per gram, based on a global price of $2,600 per ounce.

The IMF agreement is expected to unlock further funding, with the total program reaching $8 billion. The Fund emphasized the need to accelerate structural reforms, particularly reducing the state's role in the economy, advancing the government asset divestment program, ensuring equal opportunity for the private sector, and improving the business climate.

Non-banking financial services in Egypt surpassed 1 trillion EGP for the first time, reflecting growth in insurance, leasing, microfinance, and capital market activities.

Looking ahead, the IMF forecasts GDP growth of 4.3–4.4% in 2025 and 4.5% in 2026, while inflation is expected to decrease from 20.4% in 2025 to 11.8% in 2026. Unemployment stood at 6.5% in Q2 2024 and is projected to fall to 6.4% by 2029.

Sources: IMF Press Release (Dec 22, 2025), Egyptian Ministry of Planning, Central Bank of Egypt, Trading Economics, World Bank, local gold and silver price data.