The bank expected the Egyptian economy to grow by 4.7% in the fiscal year 2024-2025
The World Bank lowered its forecast for the growth of the Egyptian economy to 4% during the current and next fiscal years, compared to 4.5% and 4.8%, respectively, in previous forecasts, but stressed that Egypt will continue to lead growth in the Middle East region despite that.
The bank attributed the reduction expectations to high inflation rates, which in turn eroded income and hindered business activity.
The World Bank expected growth to rise to 4.7% in the fiscal year 2024-2025, supported by the services sector, specifically tourism, in addition to the recovery of the construction sector.
The World Bank stated that despite lowering its expectations for the growth of Egypt’s economy, growth will remain higher than peers, supported by the increase in competitiveness following the devaluation of the Egyptian pound, in addition to the growth of the services sector, particularly tourism, the Suez Canal, and the growth of the construction sector.
The Egyptian market is awaiting the release of inflation figures for the month of March next Monday. The market is also awaiting the meeting of the Automatic Pricing Committee for Petroleum Products to determine fuel prices for the second quarter of this year, and awaiting the first review by the International Monetary Fund.
It is worth noting that the Egyptian economy recorded a growth rate of 3.9% during the second quarter (October-December) of the current fiscal year, according to preliminary data from the Ministry of Planning and Economic Development.
Hala Al-Said, Minister of Planning and Economic Development, indicated that the Egyptian economy continued to grow during the second quarter of the current fiscal year by 3.9%, despite the global economic situation and the state of uncertainty imposed by global economic and geopolitical challenges and changes.
Hala Al-Said explained that according to preliminary data, the growth rate of the Egyptian economy during the first half of the current fiscal year was estimated at 4.2%, and despite the current effects of the Russian-Ukrainian crisis, which is likely to extend during the next year, the economy is expected to achieve The Egyptian economy grew by regarding 4.2% by the end of the fiscal year 2022-2023.