Egypt’s economic growth is expected to fall to 3.7% from 4.2% in fiscal year (FY) 2024/2025, according to Egypt Country Risk Report by BMI, a Fitch Solutions Company.

This forecast is based on the country’s weaker performance in the fourth quarter (Q4) of FY 2023/2024 and the ongoing disruptions at the Suez Canal.

However, a rebound in non-oil exports and investment is projected to maintain growth above the 2.4% rate recorded in FY2023/24.

BMI also expects Egypt’s economic growth to accelerate to 5.1% in FY 2025/2026, up from its previous forecast of 4.7%.

This forecast for FY 2025/2025 is backed by expectations of normalization of Red Sea navigation and an improved performance in the services sector due to reduced geopolitical risks.

As per investment activity, BMI expects it to see a robust performance on the back of foreign investment and lower borrowing costs.

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