Egypt's inflation rate slowed to 13.9% in July 2025 from 14.9% in June, with projections indicating further easing to between 14% and 15% for the year, supported by recent monetary policy adjustments.

Annual inflation for the second quarter of 2025 was 15.2%, down from 16.5% in the previous quarter, and is expected to decline further, with an average of 14-15% in 2025.

Core inflation remained stable at around 11.6%, and monthly inflation turned negative, signaling easing price pressures in the economy.

The Central Bank of Egypt reduced its overnight interest rates by 200 basis points in August 2025, setting deposit and lending rates at 22% and 23%, respectively, marking its third rate cut this year amid declining inflation.

This rate cut was supported by recent data showing a slowdown in inflation and stabilization of the Egyptian pound, which has been more volatile since the pandemic.

The Central Bank plans to continue monitoring economic conditions and aims to bring inflation closer to its target of 7% by Q4 2026 and 5% by Q4 2028, using all available tools to maintain price stability.

Egypt's economy grew by an estimated 5.4% in the second quarter of 2025, with an annual average of 4.5% for the fiscal year, driven by manufacturing and tourism sectors.

This stronger-than-expected growth reflects positive momentum, supported by reforms and increased activity in key sectors.

Egypt received a $1.2 billion loan from the IMF in March 2025 and an additional €4 billion from the EU to support economic growth.

International agencies like the IMF and the World Bank project Egypt's economic growth at around 3.8% to 4.2% for 2025, bolstered by recent financial aid and reforms.

Despite positive trends, risks such as regional geopolitical tensions and administered price adjustments remain, influencing future monetary policy decisions.

The unemployment rate decreased to 6.1% in Q2 2025 from 6.3% earlier, indicating a strengthening labor market.