Fitch: Egypt’s consumer spending growth faces slowdown in ’25

Egypt’s consumer spending growth is forecast to slow in 2025 as the effects of social spending measures implemented in 2024 begin to wane, as per a Fitch Solution’s BMI report.

The country’s authorities are advancing discussions with the International Monetary Fund (IMF) for the fourth review under the Extended Fund Facility (EFF), focusing on policies such as exchange rate unification and the impact of monetary tightening over the past year. These measures are beginning to influence consumer activity, further dampening growth.

A significant challenge to sustaining high private consumption growth lies in the economy’s capacity to integrate its large youth population, a critical factor for boosting spending. Additionally, the ongoing conflict in the Middle East heightens Egypt’s exposure to geopolitical risks, compounding the fragility of its economic recovery.

Attribution: Amwal Al Ghad English

Subediting: Y.Yasser