Arab Finance: The European Bank for Reconstruction and Development (EBRD) has revised its forecasts for Egypt's economic growth, projecting the economy will fall to 4.9% in both 2026 and 2027, from 5.1% in 2025, as per the bank's latest Regional Economic Prospect (REP) report.
The revised outlook was included in the EBRD's latest report on economic prospects in the Southern and Eastern Mediterranean region, which expects regional growth to slow in 2026 before recovering the following year.
According to the report, the Southern and Eastern Mediterranean region is expected to record economic growth of 2.5% in 2026, compared with around 3.1% in 2025, before accelerating to 4.2% in 2027.
Despite the lower forecasts, the bank noted that economic conditions in the region improved at the beginning of 2026, supported by stronger performance in Egypt and Morocco, signs of recovery in Lebanon, and continued economic expansion in Jordan and Tunisia.
The EBRD also highlighted Egypt's continued role in supporting regional economic activity, citing ongoing economic reforms and positive developments across several productive and investment sectors as key drivers of growth.
According to the report, these factors continue to underpin the Egyptian economy even as the bank adopts a more cautious outlook for growth over the next two years.
