The World Bank also expects Egypt’s GDP growth to rise to 3.9% in Fiscal Year 2024/2025.
The World Bank forecasts that Egypt’s GDP growth to slow to 3.5% in Fiscal Year 2023/2024 down from its previous forecast of 4% according to its Global Economic Prospects report for January 2024. The World Bank also expects Egypt’s GDP growth to rise to 3.9% in Fiscal Year 2024/2025.
The report states that the current conflict in the Middle East will likely aggravate the inflation problem in Egypt, “eroding households’ purchasing power and constraining activity in the private sector, and intensify pressures on external accounts through implications on tourism, remittances, and oil trade balance,” the report reads.
Egypt’s annual inflation rate dropped to 35.2% in December 2023, with inflation driven by food and beverage prices, explained the Central Agency for Public Mobilization and Statistics (CAPMAS) in its latest report.
The World Bank also stated that “import restrictions constrained access to inputs for domestic production and exports, while declining purchasing power of households and sluggish corporate activity weighed on investment and private consumption.”
Egypt lowered its growth forecast for the current fiscal year in early December, with Minister of Planning and Economic Development Hala El-Said announcing an expected 3.5% growth rate for FY2023/2024 compared to the previous projection of 4.2%.
