Egypt has taken decisive and proactive steps to strengthen its economy and cushion external shocks stemming from the Iran war, according to Director of the Middle East and Central Asia Department, International Monetary Fund (IMF), Jihad Azour.
Azour said Egypt’s policy response has been “notable” in its efforts to manage spillovers from the conflict, speaking at the launch of the IMF’s April 2026 Regional Economic Outlook on the sidelines of the Spring Meetings of the IMF and World Bank.
He highlighted the flexibility of Egypt’s exchange rate as a key factor helping the economy absorb external pressure, adding that recent policy actions have supported resilience in the face of global shocks.
Azour noted that the Iran conflict has already had visible spillover effects across the region, including higher commodity prices, financial market volatility, disrupted supply chains, and rising global fuel costs.
The Director of the Middle East and Central Asia Department also pointed to lessons learned from the Ukraine war, saying fiscal responses have been more carefully targeted, with greater emphasis on directing support to vulnerable groups and strengthening social safety nets.
He added that Egypt’s initial success in containing the shock has helped bolster investor confidence, contributing to the return of foreign capital inflows to local markets.
