The IMF’s forecast is more optimistic than the government’s, which recently lowered its growth outlook for the current fiscal year to 5.7% from 6.2/6.5%
Forecasting a more positive outlook for Egypt’s current fiscal year’s growth, the International Monetary Fund (IMF) revised its expectations for the country’s economy, moving it up to 5.9% in FY 2021/2022, compared to its previous 5.6%.
On the other side, the IMF lowered its global economic growth forecast from 4.4% to 3.6%.
The IMF’s forecast is more optimistic than the government’s, which recently lowered its growth outlook for the current fiscal year to 5.7% from 6.2/6.5%, pointing to the Russia/Ukraine conflict’s economic impact.
In its latest World Economic Outlook, the IMF expected that Egypt's gross domestic product (GDP) in 2023 would grow by 5%. In general, the IMF continues to see positive strides in the Egyptian economy, consistently increasing the projections in its forecasts since January.
However, the IMF doesn’t expect Egypt’s economic growth to grow as steadily, projecting economic growth at 5% for FY 2022/2023, down from 5.6%.
Consumer prices in Egypt will rise on average by 7.5% this year, then rise at an 11.0% pace in 2022-2023, according to the IMF. The annual urban rate reached a three-year high of 10.5% in March, and analysts are forecasting inflation to continue rising in the months ahead, with some predicting it to go as high as 15%.