World Bank trims forecast for Egypt’s GDP growth in FY2023/24
Updated 6/7/2023 7:47:00 AM
Arab Finance: The World Bank Group (WBG) has slashed its projection for Egypt’s real gross domestic product (GDP) growth for both fiscal years (FY) 2022/2023 and 2023/2024 to 4% each, according to the bank’s June 2023 Global Economic Prospects report.
WBG also forecasted Egypt’s GDP growth to hit 4.7% in FY 2024/2025.
In its January Global Economic Prospects report, the bank estimated Egypt’s real GDP growth at 4.5% in FY 2022/2023 and 4.8% in FY 2023/2024.
Both consumer consumption and company production are projected to remain constrained by significant rises in interest rates, severe currency depreciation, high and growing inflation, limited access to foreign currency, and higher production costs, according to the World Bank.
“Egypt—the region’s most populous country, which is heavily reliant on the Nile River—rising temperatures could lead to extreme drought and flooding, compromise water availability, and increase the severity, frequency, and duration of heatwaves. The costs of climate change in Egypt could amount to 2-6% of GDP by 2060,” the World Bank stated.
Ministry of Finance’s draft budget report revealed before that Egypt’s GDP is predicted to hit 4.2% in the current FY.
Egypt is expected to start the new fiscal year (FY) 2023/2024 with an ambitious budget plan, targeting EGP 3 trillion in total expenditures and revenues of EGP 2.1 trillion.
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