Bartos added that the Egyptian economy was in a strong position at the beginning of 2026, with notable growth and low inflation. However, the the onset of the US-Israeli war on Iran, coupled with the volatility of global energy prices has clearly exposed the weaknesses of the Egyptian economy, thereby jeopardizing its recovery. He noted that continued pressure on commodity prices, energy supply disruptions, and increasing capital outflows pose significant downside risks to the outlook. Bartos predicted that high energy costs, along with a weak currency, will lead to higher inflation in the near term. Egypt is experiencing its largest capital outflow since the Russian invasion of Ukraine, he noted, which has led to a sharp depreciation of the Egyptian pound.

Source: Egypt Independent April 11, 2026 14:43 UTC