The bank also expected current deficit to expand to 2.5% gross domestic product (GDP) by the end of 2027.
Goldman Sachs projected that Egypt's external financing to witness a $26.5 billion surplus over the next four years, compared to previous anticipation of a deficit of $13 billion.
The bank also expected current deficit to expand to 2.5% gross domestic product (GDP) by the end of 2027.
This projection came within the framework of the UAE’s investment in Ras El Hekma, the flotation of Egyptian pound, and IMF financing deal.
Egypt’s trade deficit will reach $40.1 billion in 2024, compared to $31.4 billion in 2023, according to Goldman Sachs’ research note.
Additionally, Egypt’s foreign exchange reserves are expected to reach $50 billion by the end of 2024, to rise to over $60 billion by the end of 2027.
Egyptians' remittances abroad will increase to a little less than $30 billion by the end of 2027, compensating for much of the widening trade deficit.
The bank said that the Ras El Hekma deal contributes to attracting direct foreign investment flows worth $24 billion, in addition to $9 billion in other foreign investments expected in 2024.
Earlier in March, the IMF loan has been augmented and increased to $8 billion instead of $3 billion.
Prime Minister, Mostafa Madbouly, also explained in the press conference on March that Egypt will also receive $12 billion in soft loans from the World Bank and the European Union.
