Meanwhile, the IMF raised its estimate for Egypt’s economic growth in the fiscal year ended June 30 to 4.6%, compared to 4.2% in its April projections.
The International Monetary Fund has lowered its forecast for Egypt’s economic growth in the current fiscal year to 4.4%, down from 4.8% in its previous estimates issued in April, according to the World Economic Outlook report released on Wednesday.
Meanwhile, the IMF raised its estimate for Egypt’s economic growth in the fiscal year ended June 30 to 4.6%, compared to 4.2% in its April projections.
This comes as the IMF also cut its forecast for economic growth in the Middle East and Central Asia this year to 0.7%, down from 1.9% in its April estimates. However, it raised its forecast for the region’s growth next year by 1.9 percentage points to 6.5%.
The IMF attributed the downgrade for Middle East economies this year to the continued impact of the Strait of Hormuz closure, which lasted longer than expected in its April report. The earlier outlook had assumed that energy production and shipping activity through the Strait would return to normal within a few months.
However, the Fund said oil and gas-importing countries in the Middle East and North Africa are expected to show relative resilience in the face of higher energy and food prices resulting from the Iran war and the closure of the Strait of Hormuz. It noted that the ceasefire agreement between Iran and the United States has recently helped bring oil prices down from their April peak.
Globally, the IMF lowered its forecast for global economic growth this year to 3.0%, down from 3.1% in its April estimates. It also raised its growth forecast for next year to 3.4%, up 0.2 percentage points from the April outlook.
In its April report, the IMF had cut its forecast for Egypt’s economic growth in FY2025/26 to 4.2%, down from 4.7% in its January estimates, citing the economic repercussions of the Iran war, including higher energy and commodity prices.
