Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

IMF Cuts Egypt’s Economic Growth to 3% in 2024, 4.7% in 2025

Tue 30 Jan 2024 | 08:12 PM
The International Monetary Fund IMF
The International Monetary Fund IMF
Taarek Refaat

The International Monetary Fund (IMF) cut its forecasts for Egypt's economic growth to 3% in 2024 and 4.7% in 2025, a decline of 0.6% and 0.3%, respectively, from its previous forecast issued in October.

According to the World Economic Outlook report for January 2024, the IMF estimated Egypt’s economic growth in 2023 at 3.8%.

The Fund indicated that global growth is expected to reach 3.1% in 2024 and 3.2% in 2025, with forecasts for 2024 higher by 0.2% than what was stated in the October 2023 issue of the “World Economic Outlook” report. This is due to better-than-expected resilience in the United States and many emerging market and developing economies, as well as support from China's public finances.

However, the forecasts for the period 2024/25 are below the historical average level of 3.8% (for the period 2000-2019), in light of the rise in basic interest rates set by central banks to combat inflation, and the withdrawal of financial support in the context of high debt, which negatively affects economic activity, and lower primary productivity growth.

The report pointed out that inflation is falling at a faster pace than expected in most regions, with the severity of problems on the supply side diminishing and monetary policy tightening.

Expectations indicate that global headline inflation will decline to 5.8% in 2024 and 4.4% in 2025, with forecasts for 2025 being reduced.