Egypt’s economy expected to grow 4% in FY2024/25: Reuters poll

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Arab Finance: Egypt's economic growth for the current fiscal year (FY) 2024/2025 is projected to hit 4%, according to a Reuters poll.

This figure marks a drop from the 4.35% growth predicted in April and the 4.15% forecast in January.

The poll, which surveyed 17 economists, also indicated that Egypt's economy grew by 2.9% in the FY that ended on June 30th, 2024, falling short of the 3% predicted in April and the 3.5% estimated in January.

However, the economy is expected to rebound with a growth rate of 4.99% in FY 2025/2026.

James Swanston of Capital Economics noted that tighter fiscal and monetary policies, coupled with a weakened pound following the $8 billion agreement with the International Monetary Fund (IMF) in March, are likely to constrain growth this FY.

Despite this, Swanston expressed optimism for stronger real gross domestic product (GDP) growth starting in FY 2025/2026.

Recently, the International Monetary Fund (IMF) slashed its forecast for Egypt's GDP growth by 0.3% for both the previous and current FYs.

The global organization now expects Egypt's real GDP to hit 4.1% in FY 2024/2025 and 2.7% in FY 2023/2024.

However, the World Bank Group (WBG) reaffirmed its forecasts for Egypt's GDP growth, maintaining it at 4.2% for FY 2024/2025 and 4.6% for FY 2025/26.