Egypt’s GDP expected to grow 4% in 2025: Mastercard Economics Institute
Updated 12/17/2024 8:52:00 AM
Arab Finance: Egypt’s gross domestic product (GDP) is expected to grow by 4% year-on-year (YoY) in 2025, according to the Mastercard Economics Institute’s annual report.
The country is likely to outperform global GDP growth, which is forecast to hit 3.2% next year from 3.1% in 2024.
Consumer spending in the country is predicted to increase by 1.8%, while consumer price inflation is likely to fall to 19.3%.
Macroeconomic adjustments, including tight fiscal and monetary policies, currently constrain economic growth.
Regarding tourism, the sector is projected to continue its effective role in anchoring the country’s economy, with inbound travel showing remarkable resilience.
Khatija Haque, chief economist, EEMEA, Mastercard, commented: “With inflation in Egypt moderating, economic growth will gradually rebound."
“As the business cycle matures, the structural forces that have shifted the landscape will become more apparent, helping define the new landing place for economies around the world,” Haque added.
In October, the World Bank Group (WBG) downgraded its projection for Egypt’s GDP growth for the current fiscal year (FY) 2024/2025 to 3.5%.
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