The World Bank stated that despite lowering expectations for the growth of Egypt's economy, growth will remain higher than peers, supported by the increase in competitiveness after the devaluation of the Egyptian pound, in addition to the growth of the services sector, particularly tourism, the Suez Canal, and the growth of the construction sector.
The World Bank lowered its forecast for the growth of the Egyptian economy to 4% during the current and next fiscal years, compared to 4.5% and 4.8%, respectively, in previous forecasts, but stressed that Egypt will continue to lead growth in the Middle East region despite that.
The bank attributed the reduction expectations to high inflation rates, which in turn eroded income and hindered business activity.
The World Bank expected growth to rise to 4.7% in the fiscal year 2024-2025, supported by the services sector, specifically tourism, in addition to the recovery of the construction sector.
The Egyptian market is awaiting the release of inflation figures for the month of March, next Monday. The market is also looking forward to the meeting of the Automatic Pricing Committee for Petroleum Products to determine fuel prices for the second quarter of this year, and to await the first review by the International Monetary Fund.
Oman is also expected to record a GDP of 4.3%, one of the highest in the Middle East, after recording 5% in 2022.
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