World Bank updates Egypt’s FY24, FY25 growth forecasts

Egypt’s economic growth is expected at 2.8 per cent in the 2024 financial year – which runs from July 2023 to June 2024, the World Bank said on Monday.

The growth outlook for 2024 was reduced from 3.5 per cent as forecast in January.

According to its MENA Economic Update report titled: Conflict and Debt in the Middle East and North Africa, the World Bank also forecast Egypt’s economic growth at 4.2 per cent in the 2025 financial year, making an upward revision to its January projections of 3.9 per cent growth.

“Growth is forecast to decline to 2.8 percent in FY24 from 3.8 percent in FY23, exacerbated by the repercussions of the Middle East conflict notably on key foreign in-come-generating sectors (Suez Canal and tourism).” the international lender explained in its Macro Poverty Outlook for Egypt released ahead of the World Bank/IMF Spring Meetings in Washington.

“Growth is expected to start rebounding in FY25-FY26 driven by growth in investment (albeit from a low base), and improved private consumption with the projected pickup in remittances and the gradually abating inflation.”