The World Bank issued several forecasts regarding the performance of the Egyptian economy in 2024, indicating that growth in Egypt’s gross domestic product would record a level of 3.8% in 2023, down from 6.6% in 2022, then to 3.5% in 2024, and to 3.9% in 2025, according to A bank report was issued Tuesday.
The conflict in the Middle East will likely exacerbate Egypt's inflation problem, restrict private sector activity, and increase pressure on foreign transaction accounts due to declining tourism revenues and remittances from Egyptians abroad. The conflict will also negatively affect the tourism sector in Jordan.
The report indicated a slowdown in growth in the fiscal year 2022/2023 (from July 2022 to June 2023) in Egypt due to restrictions imposed on imports, a decline in the purchasing power of households, and a slowdown in corporate and business activity.
The recent conflict in the Middle East has increased geopolitical and policy uncertainty in the region, and has led to weak tourism-related activity, especially in neighboring countries. The region has already faced many negative developments, including reduced oil production, high inflation rates, and weak private sector activity in oil-importing countries.
In 2023, the growth rate in the Middle East and North Africa region slowed sharply to reach 1.9%. In oil-exporting countries, the oil sector witnessed a noticeable weakness due to production cuts.
It is estimated that the growth rate in the Gulf Cooperation Council countries has slowed sharply in 2023 due to a decline in oil production, and this slowdown has exceeded the strong activity in the non-oil sector.
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