Capital Economics forecasts Egypt’s GDP at 5% in FY2024/25
Updated 1/23/2025 8:36:00 AM
Arab Finance: Capital Economics expects Egypt’s gross domestic product (GDP) growth to hit 5% in fiscal year (FY) 2024/2025, Emerging Markets Economist James Swanston said in a research note.
This marks a 2.6 percentage point jump when compared to the previous FY.
GDP growth is forecast to rise again in FY2025/2026 to 5.3%, according to Emerging Markets Economist.
Swanston highlighted that “improved confidence in the economic outlook has caused a jump in company registrations, largely in services.”
Meanwhile, Capital Economics’ measure of real-FX-adjusted bank lending to the non-government sector rose by 2.9% year-on-year (YoY) in October. The manufacturing output surged by 11% from its 2023 low point.
The economist elaborated that a weakening EGP is improving “Egypt’s external competitiveness.”
He added that there are further signs from the PMI survey that this is “supporting stronger external demand.”
Recently, the International Monetary Fund (IMF) and World Bank slashed their forecasts for the current fiscal, with the World Bank lowering its last forecast to 3.5%, while the IMF cut its growth expectations by 0.5% to 3.6%.
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