World Bank maintains Egypt’s economic growth forecast at 4.2% for FY2024/25
Updated 6/12/2024 6:30:00 AM
Arab Finance: The World Bank Group (WBG) has reaffirmed its forecasts for Egypt's real gross domestic product (GDP) growth, maintaining it at 4.2% for fiscal year (FY) 2024/2025 and 4.6% for FY 2025/26, as reported in the bank’s Global Economic Prospects Report for June.
This growth projection is underpinned by various factors, including increased investment, notably fueled by the Ras El-Hekma agreement with the UAE.
Additionally, the report showed that private consumption in Egypt is expected to grow on the back of a resurgence in remittances and a decline in inflation.
Moreover, the depreciation of the exchange rate is foreseen to bolster net exports, contributing to economic growth, the WBG noted.
It also added that fiscal deficits would widen in case proceedings of the recent deal with the UAE are excluded.
Factors contributing to this include escalating interest expenses, influenced by tightened monetary policy and currency depreciation.
The implementation of social mitigation measures, along with decreased economic activity and consumer spending impacting tax revenue, is also anticipated to exacerbate fiscal pressures, as per WBG.
The bank also projected that Egypt's economic growth would hit 2.8% by the end of the current FY 2023/2024.
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