CAIRO – 24 October 2024: Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated that the ongoing conflict in Gaza has significantly impacted Egypt’s economy, causing a 70 percent reduction in Suez Canal revenues.
Speaking at a press conference in Washington to Youm7, Georgieva acknowledged Egypt's commitment to key economic reforms despite these challenges.
She also announced plans to visit Egypt within 10 days to assess the country's economic indicators and review the situation in light of the regional and global developments affecting its economy.
In October, the IMF revised its economic forecasts for Egypt, predicting a GDP recovery to 4.1 percent for FY2025/2026, a marked improvement from its 2.7 percent projection for FY2024/2025.
Egypt's actual GDP growth for FY2023/2024 reached 3.8 percent, exceeding the IMF’s previous estimate of 2.7 percent made in July.
The IMF’s latest World Economic Outlook raised concerns about Egypt’s current account balance, which is expected to hit -6.6 percent in FY2024/2025 and improve slightly to -6.4 percent by FY2025/2026.
Inflation remains a major challenge, with consumer prices rising to 24.4 percent in FY2023/2024, projected to increase to 33.3 percent in FY2024/2025 before easing to 21.2 percent in FY2025/2026.
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