JP Morgan expects a surprise in Egypt’s foreign reserves

JP Morgan expects a surprise in Egypt’s foreign reserves

Egypt – JP Morgan Bank expressed its expectations that Egypt’s foreign exchange reserves will increase by $16.2 billion in the next fiscal year 2024/2025, and $2.6 billion in the fiscal year 2025/2026.

According to a report by the American multinational financial services company, “the country’s current account deficit is expected to widen to $15.2 billion, or 4% of GDP this year.”

J.P. Morgan, one of the largest international American banks, expected that net flows of foreign portfolio investments would reach $8.1 billion, which can be considered conservative in light of the large net flows to the local market.

The bank expected that “interest expenses will rise to 9.7% of GDP in the fiscal year 2024/2025, and 11% in the fiscal year 2025/2026, while constituting regarding 70% of revenues.”

However, JPMorgan expects that “Egypt’s public debt to GDP will decline to 85% in the 2025/2026 fiscal year.”

The bank expressed its expectation that economic growth in Egypt would recover to 4.3% in the fiscal year 2025/2026, compared to its estimates of 2.8% in the fiscal year 2023/2024.

The Egyptian economy has witnessed remarkable development recently, thanks to many measures taken recently by the state.

Source: RT

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2024-05-04 23:11:28

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