Ahmed Kamel – Egypt Daily News
Egypt is entering a more resilient phase of its economic cycle, with stronger policy buffers helping it absorb external shocks that have rattled emerging markets in recent years, the International Monetary Fund said.
The assessment comes as Egypt’s currency shows tentative stabilization following shifts in global risk sentiment and easing geopolitical pressure in the wider region.
Rather than reacting to a single event, the IMF framed Egypt’s current position as the result of a longer adjustment process that followed multiple global disruptions, including the inflation surge triggered by the Russia–Ukraine war in 2022.
Jihad Azour said in Washington that Egypt has improved its ability to withstand volatility compared with previous crisis periods, pointing to reforms that have strengthened macroeconomic management.
He indicated that the country is now better positioned to deal with fluctuations in energy prices, capital flows, and global interest rate cycles, factors that have repeatedly tested emerging economies in recent years.
Market observers note that the Egyptian pound has regained part of its recent losses, reflecting improved short-term sentiment and reduced pressure in foreign exchange markets, although volatility risks remain tied to external conditions.
The IMF emphasized that Egypt’s progress is linked to cumulative reforms rather than short-term developments, suggesting that resilience will depend on maintaining policy consistency and continuing structural adjustments.
Despite recent stabilization signals, the broader outlook remains sensitive to global shocks, particularly energy price swings and tightening financial conditions that continue to affect capital flows to emerging markets.
For Egypt, the key challenge ahead is not only maintaining currency stability, but also sustaining investor confidence while navigating a highly uncertain global environment.
