Egypt poised to buck emerging markets slowdown in 2025: Moody’s
Updated 11/21/2024 8:24:00 AM
Arab Finance: The economic growth trajectory for Egypt, Saudi Arabia, and the UAE in 2025 is expected to diverge from the expected slowdown in most major emerging markets, a report by Moody’s Investors Service showed.
The report attributes this resilience to robust domestic initiatives and significant projects bolstering these economies, mainly in Saudi Arabia.
Moody’s forecasts Egypt’s economy to grow by 4% in 2025, an improvement from the estimated 2.4% growth for 2024.
This comes after adjustments to the country’s economic growth target of 4.2% for the fiscal year (FY) ending June 2025, influenced by regional geopolitical tensions and public spending rationalization.
Inflation in Egypt, while still elevated, is expected to ease significantly from 27.5% in 2024 to 16% in 2025 and further to 13% in 2026, according to Moody’s.
However, inflation remains a concern, with recent figures consistently exceeding 26%.
Moody’s predicts that aggregate growth across major emerging markets will slow to 3.8% in 2025, down from an anticipated 4.1% in 2024.
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