Egypt in June 2026: the most important developments in economy
In Egypt in June 2026, the economic news centered on the new budget and the state's efforts to steer production and investment. The FY2026/27 budget allocated 90 billion Egyptian pounds to productive sectors, targeted 3.7 trillion pounds in total investment and a purchase of 5 million tons of local wheat. On June 2, Egypt listed sugar on its commodities exchange to help regulate the market. Prime Minister Madbouly announced a gradual shift to cash subsidies, while the food subsidy budget was raised to 160 billion pounds. Health and education spending was protected under the austerity plan, and Egypt reported a primary surplus of 3.5 percent. On June 30, it reached an expert-level agreement with the IMF for a new loan tranche, and the EU pledged 90 million euros for energy support.
External finances showed mixed movements. Net international reserves rose to $53.13 billion in May, and Egypt cleared $6.1 billion in arrears to oil and gas partners. The pound surged against the dollar on June 14, then weakened past 50 to the dollar on June 17 for the first time since March. Hot money inflows reached $8 billion in June. Suez Canal revenue rose 23 percent to $4.6 billion in fiscal year 2025/26, and the canal recorded its highest monthly revenue since February 2024 in early June. Egypt and China extended their currency swap for three years.
Investment focused on energy and industry. Egypt signed $420 million in wind energy deals, a further 750 megawatt wind deal, and gas agreements with Eni and Harbour Energy. China's SANY backed Egypt's first 2-gigawatt wind turbine factory, and another Chinese company invested $550 million in a tire factory. The energy ministry set a goal of 60 percent renewable electricity by 2040. Egypt launched an initial public offering program for state-owned petroleum companies, with three firms listing on the Egyptian Exchange. Egypt also raised charter flight incentives for tourism to $165 million and reported exports above $9 billion.
by WorldBrief & Maksim Micheliov | AI-generated summary
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