IIF estimates Egypt’s financing gap for FY2023/24 at $7B
Updated 12/17/2023 7:51:00 AM
Arab Finance: The Institute of International Finance (IIF) has estimated Egypt’s financing gap for fiscal year (FY) 2023/2024 at around $7 billion, Asharq Business reported, citing a report by the IIF.
This gap is likely to be bridged mainly by foreign direct investment (FDI) and official financial inflows, the IIF noted.
Moreover, the institute expects Egypt’s real gross domestic product (GDP) to grow by 3.3% in the current fiscal year, which is below the International Monetary Fund’s (IMF) expectations of 4%.
The institute also said that soaring inflation, foreign currency shortage, supply bottlenecks, and the Gaza-Israel war are likely to cause a shrinkage in private consumption and limit exports in the North African country.
The IIF’s forecasts are based on speculations that the IMF would resume its $3 billion loan program in early 2024 after the Egyptian presidential elections, and that Egypt would endorse a significant devaluation of the pound and move toward a flexible exchange rate regime.
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