Egypt's economic policies helped absorb Iran war shock, says IMF's Azour

Speaking at the launch of the IMF's April 2026 Regional Economic Outlook, Azour described Egypt's policy response to the conflict's spillovers as "notable." He emphasized that exchange rate flexibility was crucial in enabling the economy to withstand global volatility, and recent policy actions have enhanced resilience to external pressures. Azour noted that the Iran conflict has impacted the region through increased commodity prices, supply chain disruptions, higher fuel costs, and financial market instability.

He also observed that governments are increasingly applying lessons from past crises, such as the Ukraine war, by providing more targeted fiscal support to vulnerable households instead of broad subsidies. Azour concluded that Egypt's handling of the initial shock has boosted investor confidence, leading to renewed foreign capital inflows into its domestic markets.