Fitch Solutions raises Egypt’s 2022 real GDP growth forecast to 6.23%

Fitch Solutions has on Sunday revised for the third consecutive month its projections for Egypt’s real GDP growth for 2022 to 6.23 percent, up from 6.17 percent.

According to its updated report on MENA economic outlook, Fitch has maintained its expectations for Egypt’s inflation rate at 13.2 percent through end of 2022 for the second month in a row.

Continuing its upturn fuelled by the global economic crisis, Egypt’s annual inflation rate soared to 15.3 percent in August 2022, compared to 6.4 percent in the same month of last year, according to the latest figures published by the country’s official statistics agency CAPMAS. It is also higher than the rate recorded in July of 14.6 percent.

“All the Levant economies except for Israel are set to see their growth accelerate slightly in 2023. Easing domestic and global inflationary pressures will help support private consumption, which typically is a main driver of growth in Levant Ex-Israel,” Fitch report read.

The Central Bank of Egypt’s Monetary Policy Committee (MPC) is due to convene next Thursday to review the key interest rates in light of global and local economic updates; particularly August’s inflation readings and the U.S. Federal Reserve’s anticipated rate decisions.