This makes it the fifth-consecutive month that Fitch has raised its expectations for Egypt’s real GDP growth this year
Fitch Solutions has upped its forecast for Egypt’s 2022 real GDP growth to 6.62%, 0.3% above October’s reading of 6.59%, according to its latest update on its monthly MENA Economic Outlook Report.
This makes it the fifth consecutive month that Fitch has raised its expectations for Egypt’s real GDP growth this year.
However, Fitch has downgraded its outlook for the Egyptian economy last week from stable to negative, citing a deterioration in the country's external liquidity position and reduced prospects for bond market access.
In its recent report, the ratings agency also lowered its expectations for Egypt’s inflation rate for the first time in four months to 13% through the end of 2022, a slight reduction from its previous 13.2%.
Urban inflation accelerated to a four-year high with a climb of 16.2% in October 2022, with the annual inflation rate at 16.3%, according to CAPMAS last week.
Fitch also projected that the EGP will continue to weaken in the coming weeks. Since the announcement of a durably flexible exchange rate by the CBE, the EGP has fallen against the USD and is currently trading at EGP 24.36 for buying and EGP 24.44 for selling, according to the CBE.
