The International Monetary Fund (IMF) has updated its growth forecasts for Egypt’s economy, predicting an increase in growth rates for the current and next fiscal years. The new projections anticipate growth at 3.8 percent for the current year and 4.3 percent for the next, marking an upward adjustment from the previous forecasts of 3.6 percent and 4.1 percent made in January.
While the IMF’s World Economic Outlook report did not elaborate on the factors for this positive revision, the Egyptian economic landscape shows promising developments. The latest data suggests that Egypt’s economy expanded by 2.4 percent in 2024, indicating a resilient economic performance.
Echoing this optimism, Dr. Rania Al Mashat, Egypt’s Minister of International Cooperation, recently projected a 4 percent economic growth for the current fiscal year, concluding on June 30. She further anticipates an acceleration to 4.5 percent in the next fiscal cycle. Dr. Al Mashat also highlighted the projected GDP at current prices, expecting it to reach EGP20.4 trillion ($399.8 billion), underscoring the government’s strategic initiatives aimed at stimulating economic expansion amidst prevailing challenges.
The Egyptian economy recorded its fastest quarterly growth in over two years, achieving a 4.3 percent increase in the second quarter of the current fiscal year. This surge was largely driven by robust performance in the manufacturing and tourism sectors. However, the growth came despite a notable decline in Suez Canal revenues, which have been impacted by ongoing trade tensions in the Red Sea. The Ministry of Finance reported a significant revenue loss from the canal, amounting to EGP110 billion ($2.15 billion) over the nine months ending in March.
Looking forward, Egypt stands to gain from the current dip in oil prices, which are approximately $67 per barrel. This development is particularly advantageous given the nation’s reliance on petroleum imports. Yet, Egypt faces significant economic challenges, notably its substantial public debt, which stood at 90.9 percent of GDP by the end of the last fiscal year, as noted in the IMF’s report following its recent consultations with the Egyptian government.
Economic experts are optimistic, noting that the strategic focus on key sectors and the government’s proactive measures to manage debt could pave the way for sustained growth. As the global economic environment continues to evolve, Egypt remains poised to navigate the challenges with a forward-looking approach, leveraging its strategic sectors and international partnerships
Echoing this optimism, Dr. Rania Al Mashat, Egypt’s Minister of International Cooperation, recently projected a 4 percent economic growth for the current fiscal year, concluding on June 30. She further anticipates an acceleration to 4.5 percent in the next fiscal cycle. Dr. Al Mashat also highlighted the projected GDP at current prices, expecting it to reach EGP20.4 trillion ($399.8 billion), underscoring the government’s strategic initiatives aimed at stimulating economic expansion amidst prevailing challenges.
The Egyptian economy recorded its fastest quarterly growth in over two years, achieving a 4.3 percent increase in the second quarter of the current fiscal year. This surge was largely driven by robust performance in the manufacturing and tourism sectors. However, the growth came despite a notable decline in Suez Canal revenues, which have been impacted by ongoing trade tensions in the Red Sea. The Ministry of Finance reported a significant revenue loss from the canal, amounting to EGP110 billion ($2.15 billion) over the nine months ending in March.
Looking forward, Egypt stands to gain from the current dip in oil prices, which are approximately $67 per barrel. This development is particularly advantageous given the nation’s reliance on petroleum imports. Yet, Egypt faces significant economic challenges, notably its substantial public debt, which stood at 90.9 percent of GDP by the end of the last fiscal year, as noted in the IMF’s report following its recent consultations with the Egyptian government.
Economic experts are optimistic, noting that the strategic focus on key sectors and the government’s proactive measures to manage debt could pave the way for sustained growth. As the global economic environment continues to evolve, Egypt remains poised to navigate the challenges with a forward-looking approach, leveraging its strategic sectors and international partnerships