World Bank cuts forecast for Egypt’s GDP growth in FY2024/25
Updated 10/17/2024 7:39:00 PM
Arab Finance: The World Bank Group (WBG) has downgraded its projection for Egypt’s real gross domestic product (GDP) growth for the current fiscal year (FY) 2024/2025 to 3.5%, down from a previous forecast of 4.2% announced in June, according to Growth in the Middle East and North Africa MENA Economic Update.
However, the bank’s GDP forecast for the current FY shows a rebound from the 2.5% forecast for FY 2023/2024.
The lender also expects the Suez Canal revenues to decline to $4.8 billion this FY from $8.8 billion last FY, marking an 8% drop in the country’s projected reserves.
The bank attributed this anticipated fall in revenues to the escalating security risks in the Red Sea.
“At the same time, the uncertainty of the conflict looms large over portfolio investments, heightening investors apprehension across the region,” the report read.
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