Goldman Sachs expects $26.5B external financing surplus for Egypt in 4 years
Updated 3/17/2024 3:00:00 AM
Arab Finance: Goldman Sachs projects a surplus of $26.5 billion in external financing to Egypt over the next four years, versus previous expectations of a deficit of $13 billion, according to a research note from the investment bank.
These expectations are driven by the anticipated package from the International Monetary Fund (IMF) and partners to Egypt, in addition to the Ras El-Hekma deal.
The bank expects the current account deficit to widen as imports rise at a faster pace with the availability of the USD, which is only partially offset by an increase in remittances from Egyptians abroad.
Moreover, Goldman Sachs forecasts this deficit to expand to 2.5% of gross domestic product (GDP) by the end of this year.
The investment bank’s expectations indicate that Egypt will receive financing worth only $5 billion from the IMF and other partners in 2024, in addition to $5 billion in 2025, $4 billion in 2026, and $3 billion in 2027.
Egypt’s foreign exchange reserves are expected to climb to around $50 billion by the end of this year, before rising to approximately $61 billion in 2027, as per Goldman Sachs’ research note.
Related News
