Capital Economics’ James Swanston was quoted saying “The overall net impact is that economic growth will be weaker this fiscal year,” highlighting tighter fiscal and monetary policy and a weakened EGP
Economists surveyed by Reuters are expecting Egypt’s economic growth to land at 4% during the current fiscal year (FY2024/2025), within a similar range of other forecasts from the IMF, Egypt’s government, and the World Bank.
The results, released on Tuesday, noted that growth is anticipated to slow this year with the latest forecast dropping by 0.35% compared to Reuters’ April survey.
Capital Economics’ James Swanston was quoted saying “The overall net impact is that economic growth will be weaker this fiscal year,” highlighting tighter fiscal and monetary policy and a weakened EGP.
This forecast is only slightly below the International Monetary Fund’s (IMF) expectations of 4.1% after its latest revision, followed by the World Bank and Egypt’s own forecast of 4.2%.
The World Bank cited the increased investment inflows prompted by the unprecedented deal with the UAE for the property rights of Ras El Hikma as a main factor to their forecast.
BMI Research reported the lowest expectation for Egypt’s economic growth so far, estimating a growth rate of 3.2% for the current FY.
According to the Reuters poll, the country’s economy grew 2.9% in the previous fiscal year, slightly lower than its previous prediction of 3% in April.
Surveyed economists estimate that the Egyptian pound will weaken to 49.5 against the USD by the end of June 2025.
The poll’s results included a forecast of annual headline inflation at 20.5% in FY2024/2025 and 12.05% in FY2025/2026.
