IMF raises Egypt GDP growth forecast to 4.2% for 2023

The International Monetary Fund (IMF) on Tuesday significantly raised its 2023 growth forecast for Egypt to 4.2 percent from a 3.7 percent forecast issued in July.

This is the highest growth forecast made by the global lender for the region, according to its October 2023 World Economic Outlook (WEO) report that was released on the sidelines of the IMF and World Bank annual meetings taking place in Marrakesh, Morocco.

Yet, the IMF has cut its 2024 forecast for the North African country to 3.6 percent from a 4.1 percent forecast issued in July. The global lender expects unemployment rates in Egypt to fall to 7.1 percent in 2023 from 7.3 percent in 2022.

IMF projected emerging market and developing economies to have a modest decline in growth from 4.1 percent in 2022 to 4.0 percent in both 2023 and 2024. Global inflation is forecast to fall steadily, from 8.7 percent in 2022 to 6.9 percent in 2023 and 5.8 percent in 2024, due to tighter monetary policy aided by lower international commodity prices. Core inflation is generally projected to decline more gradually, and inflation is not expected to return to target until 2025 in most cases, the IMF report added.