https://arab.news/msrmf
Egypt closed 2025 as the best-performing equity market in the Middle East and North Africa region, with impressive gains of over 40 percent. This growth stands in stark contrast to the dire economic conditions the country faced just a year earlier. The performance marks a significant turning point for not only Egypt but also the entire MENA region. Amid a global economic environment fraught with oil price volatility and monetary tightening, Egypt’s recovery has been remarkable, offering an alternative view of an economy that has faced significant challenges over past decades.
Egypt’s economic challenges peaked between 2022 and 2023, with inflation surging from 13.9 percent in 2022 to almost 34 percent in 2023. This, coupled with external financing constraints and a sharp depreciation of the Egyptian pound, put immense pressure on the economy. Geopolitical instability, particularly the Gaza conflict, further exacerbated the situation. Despite these challenges, Egypt’s economic performance in 2025 stands out as particularly impressive, considering the volatile global environment.
Amid these hardships and growing reluctance from international lenders, Egypt’s government made efforts to implement reforms, including structural changes aimed at improving the business environment and attracting foreign investment. In late 2024 and early 2025, signs of recovery emerged as inflation subsided, the currency stabilized, and business conditions began improving. By the first quarter of the 2025-26 fiscal year, Egypt had reported gross domestic product growth of 5.3 percent, a significant rise from the previous year’s 3.5 percent. These early indicators signaled a new chapter for the country’s economy.
