Egypt cuts 2022 GDP forecast to 5.7% due to Ukraine war – minister

Egypt has lowered its GDP forecast in 2022 to around 5.7 percent from 6.4 percent due to the effects of Russia’s war in Ukraine, planning minister said on Monday.

The North African country is looking for alternatives to Black Sea grain exports which witnessed disruptions due to the Russian war in Ukraine, both major wheat exporters to Egypt, Minister Hala al-Saeed told CNBC Arabia.

“Egypt saw a 9 percent growth in the first half (of the current financial year), and we were expecting a 6.4 percent for the whole year, but the Russian war in Ukraine and its impact on inflation and growth worldwide has reflected on us.” Minister al-Saeed added.

“That’s why we expect some economic slowdown as we could make a 5.7 percent growth at the end of this year.” she added.

Earlier, the Egyptian minister said in a Cabinet statement that the country also lowered its growth forecasts for the coming financial year 2022/2023 ending in June 2023 to 5.5 percent from 5.7 percent which it had predicted earlier.