Overview:

Egypt's central bank strengthened its external position as foreign reserves rose to 53.134 billion dollars by end of May, marking the 45th consecutive month of increases. Simultaneously, domestic food inflation showed signs of relief, with poultry and egg prices experiencing notable declines across regional markets. Infrastructure development continued with government inaugurations of manufacturing expansions and metro project milestones.

Details:

The Central Bank of Egypt reported net foreign reserves increased marginally to 53.134 billion dollars in May from 53.009 billion dollars in April. This sustained accumulation of reserves reflects ongoing efforts to stabilize Egypt's external financial position amid regional economic uncertainties.

Agricultural commodity markets displayed significant price movements. Egg prices declined to historic lows, with cartels trading at 55-65 Egyptian pounds in farm markets, down from 120 pounds weeks earlier—the lowest levels in years. Poultry prices similarly contracted across regional markets including Luxor and Aswan, with white and local chicken varieties stabilizing at reduced levels. These reductions address consumer cost-of-living pressures that have characterized recent months.

Government economic activity expanded across multiple sectors. Prime Minister Mustafa Madbouli inaugurated new production lines at manufacturing facilities in October 6 City and the New Alamein area, including expansions by Shahine Egypt 2 (targeting 55 million dollars in exports during 2026) and textile manufacturer Cheid Textile (500 million pounds investment with projected exports of 500 million dollars). The Alexandria Metro project advanced toward its first phase opening scheduled for March, with specifications emphasizing reduced transit times and increased operational speeds. The government also announced preparations for injecting billion-dollar investments in African economies and continued natural gas procurement to ensure summer electricity stability.

Outlook:

Investors are monitoring whether the sustained foreign reserve growth continues amid external pressures and whether food price declines translate into broader domestic inflation moderation. Attention also focuses on government industrial localization initiatives—particularly rail manufacturing, automotive sectors, and textile production—as measures to boost industrial exports toward the 100-billion-dollar target and attract foreign capital partnerships.