The World Bank has raised its forecast for Egypt's economic growth in the 2025-2026 fiscal year to 5.1%, from 4.3% in its estimates issued last April.

In its report released today, the World Bank said it had raised its growth forecast for the Egyptian economy in the current fiscal year to 4.3%, from 4% in its April estimates.

The World Bank attributed its expectation of 5.1% growth in the fiscal year ending June 2026 to lower inflation, strong domestic consumption and private investment, and a recovery in the extractive industries.

In its report titled "Middle East, North Africa, Afghanistan and Pakistan Economic Update", the World Bank Group said oil-importing countries such as Egypt, Jordan, Morocco, Tunisia, Pakistan and Djibouti remain exposed to economic risks from mounting inflationary pressure amid higher global oil and commodity prices, as well as higher borrowing costs amid continuing geopolitical risks in the Middle East, along with an expected decline in remittances from workers in the Gulf states.

For the Middle East, North Africa, Afghanistan and Pakistan region, the report said the Iran war that broke out in late February 2026 is still inflicting heavy economic losses on the region through the energy price shock. Unlike previous energy shocks, which usually benefited oil-exporting countries, the closure of the Strait of Hormuz has caused heavy losses for the Gulf's oil exporters.

The World Bank expects the economies of the Gulf Cooperation Council countries to contract by 4.3% in 2026, hit by the closure of the Strait of Hormuz and lower oil export volumes, while regional output in the Middle East, North Africa, Afghanistan and Pakistan is expected to contract by an average of 2.1% this year, compared with growth of 3.3% in 2025.