Capital Economics forecasts EGP to dip to 49/USD by end-2024
Updated 3/26/2024 1:12:00 PM
Arab Finance: Capital Economics expects a drop in the exchange rate of the Egyptian pound to reach 49 against the US dollar by the end of 2024, compared to the current average rate of EGP 47, Al Arabiya Business reported, citing a report by the firm.
The economic research firm also projects a further devaluation of the Egyptian pound over the coming two years to hit EGP 50 and EGP 55 against the US dollar in 2025 and 2026, respectively.
Moreover, it anticipates Egypt’s gross domestic product (GDP) to grow to 2.3% this fiscal year (FY).
However, it expects GDP to fall to 1.5% in FY 2024/2025 and rebound to 5% in FY 2025/2026.
In the long run, the firm expects Egypt’s economic growth to range between 5% and 7%, as cited by Arab World Press (AWP).
As for the country’s debt-to-GDP ratio, the research company predicts it to hit 93% in FY 2024/2025 and to reach 89% in FY 2025/2026, compared to an anticipated average of 96.2% this FY.
In addition, Egypt’s inflation rate is expected to hit an average of 32.5% in 2024 before dropping to 10.5% in 2025 and 4% in 2026, Capital Economics revealed.
The UK-based company also projects a decrease in key interest rates in Egypt from 27.25% now to 13.25% in 2025, and 9.25% in 2026.
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