• The IMF expects the US dollar to average EGP 51.48 in 2025 and EGP 54.05 in 2026, indicating a rising exchange rate.
• The Fund raised Egypt’s growth forecast to 4.5%, lowered inflation projection to 11.8%, and flagged rising current account deficit.
• The IMF does not publish exchange rate estimatesm instead they are inferred from GDP in local and foreign currencies

IMF

The International Monetary Fund (IMF) has revised its projections for the Egyptian pound against the US dollar. The Fund now expects the dollar to average EGP 51.48 in 2025, compared to EGP 52.26 in its April forecast.

According to Alarabiya, the IMF projects the dollar at EGP 54.05 in 2026, slightly lower than its previous forecast of EGP 54.13. While the IMF does not publish exchange rate estimates directly, they can be inferred from its nominal GDP projections in local and foreign currencies.

Economic Forecasts

According to the World Economic Outlook report, the Fund also raised its growth forecast for Egypt in the current fiscal year to 4.5%, up from 4.1% in July. Additionally, inflation projections were lowered to 11.8%, compared to 12.5% in April, reflecting recent stability in prices and exchange rates. 

Meanwhile, Egypt’s current account deficit is expected to widen to 4.3% of GDP in the current fiscal year. This is in comparison to 3.8% in earlier estimates in its previous April forecast. 

he IMF report reflects adjustments based on recent data for growth, inflation, and the Egyptian pound’s exchange rate. Current account and GDP projections show a gradual shift in the economy, highlighting the Fund’s updated fiscal and monetary estimates. Moreover, exchange rate forecasts are inferred from these nominal GDP projections in local and foreign currency instead of being outwardly published.