The CBE attributes this slowdown to ongoing global challenges, including escalating regional geopolitical tensions, persistent inflation, and high interest rates.
Egypt's real GDP growth of the Egyptian economy, recording a rate of 2.4% from July 2023 to March 2024, compared to 4.1% during the corresponding period of the previous year, according to recent data from the Central Bank of Egypt (CBE).
The CBE attributes this slowdown to ongoing global challenges, including escalating regional geopolitical tensions, persistent inflation, and high interest rates. The report also highlights that banking sector assets represented 116.9% of the nominal GDP and 92.3% of the total financial system assets by the end of the 2023 fiscal year.
Additionally, the mandatory reserve ratio in local currency held by the CBE remains at 18%, while the prudential policy maintains a cap on the total installments for consumer loans at 50% of monthly income, including mortgage installments at 40%.
The non-banking financial sector constitutes 9.8% of the nominal GDP and 7.7% of the total financial system assets.
The fiscal year 2023 witnessed significant development in the performance of non-banking financial activities, and the Egyptian capital market performed well through to the first quarter of 2024.
The report also mentions that the Financial Regulatory Authority has adopted a more flexible and responsive approach to market changes, aiming to enhance market efficiency and balance market development with stability.
As a result, the financial stability index improved to 0.44 in March 2024, up from 0.34 in March 2023, driven by notable improvements in the performance of the banking sector, financial markets, and relative improvements in macroeconomic indicators and the global economic climate.
