CAIRO - 16 April 2024: The International Monetary Fund (IMF) maintains its expectations for Egypt's economic growth at 3 percent during the current fiscal year 2023/2024, while reducing its projections for the next fiscal year 2024/2025 to 4.4 percent from 4.7 percent in the previous estimates released last January.
The IMF stated during a press conference, Tuesday, as part of the World Economic Outlook report, that the Egyptian economy achieved a growth rate in gross domestic product (GDP) of 3.8 percent during 2023.
The report noted that the baseline forecast is for the world economy to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023. A slight acceleration for advanced economies—where growth is expected to rise from 1.6 percent in 2023 to 1.7 percent in 2024 and 1.8 percent in 2025—will be offset by a modest slowdown in emerging markets and developing economies from 4.3 percent in 2023 to 4.2 percent in both 2024 and 2025.
The forecast for global growth five years from now—at 3.1 percent—is at its lowest in decades. Global inflation is forecast to decline steadily, from 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025, with advanced economies returning to their inflation targets sooner than emerging markets and developing economies. Core inflation is generally projected to decline more gradually, according to the report.
On April 1, the IMF anticipates a further increase in inflation rates in Egypt to reach 25.5 percent during the upcoming fiscal year, head of the International Monetary Fund (IMF) mission to Egypt, Ivanna Vladkova Hollar told local media sites.
Hollar also highlighted that the third review of Egypt's economic reform program is expected to be completed by the end of June. Following this review, a new loan tranche, with a maximum amount of $820 million, will be disbursed.
Under the loan program with Egypt, there are 8 reviews scheduled every six months starting from the fourth review onwards.
Completing these reviews will result in a disbursement of $1.3 billion in total, with the final review expected to conclude in the autumn of 2026.
Furthermore, in March, Egypt signed an agreement with the IMF to increase its existing $3 billion deal to $8 billion.
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