Higher oil prices, regional uncertainty weigh on Egypt’s 2026 investment outlook

Brooks was answering an Ahram Online question at the WEO's hybrid launch briefing, where she was asked to explain what was driving the Fund's decision to cut Egypt's GDP growth outlook for both 2026 and 2027.

Brooks said Egypt, like other energy-importing economies, is being negatively affected by recent developments, as higher oil prices are expected to reduce real incomes, dampen household consumption, and increase uncertainty, thereby weighing on investment.

She added that the downgrade applies not only to 2026 but also extends into 2027, reflecting a more persistent drag from external shocks.

A high-level Egyptian delegation is participating in the IMF/World Bank Group Spring Meetings, which kick off this week in Washington DC. The delegation is anticipated to hold discussions on the remaining two reviews under the country’s Extended Fund Facility (EFF) loan program, scheduled for 15 September and 15 December.