The International Monetary Fund (IMF) has downgraded its projections for Egypt's real GDP growth for FY2024/2025 and FY2025/2026, reducing them by 0.5 percent and 1 percent, respectively, according to the latest World Economic Outlook (WEO) report.
For the current fiscal year, the IMF now expects Egypt's economic growth to reach 3.6 percent, a decrease from its earlier forecast of 4.1 percent published in October.
Similarly, the projection for FY2025/2026 has been revised down to 4.1 percent, compared to the previous estimate of 5.1 percent.
One of the main reasons for the adjustment is the impact of foreign exchange restrictions and shortages.
However, despite these challenges, the IMF remains cautiously optimistic about Egypt’s recovery trajectory. As foreign exchange market conditions improve and investor sentiment begins to rebound, the economy is expected to see a gradual recovery.
This recovery is likely to be driven by increased activity in mining and manufacturing sectors, providing a foundation for continued economic growth in the coming years.
Meanwhile, Egypt's Ministry of Planning, Economic Development, and International Cooperation recently reported that the country’s GDP grew by 3.5 percent during the first quarter of the current fiscal year, up from 2.7 percent in the same period last year.
Minister Rania Al-Mashat further noted that Egypt's GDP achieved a growth rate of 2.4 percent in the final quarter of FY2023/2024, contributing to an annual growth rate of 2.4 percent.
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