Fitch’s BMI downgrades Egypt’s growth forecast for FY2024/25

Egypt’s economic growth forecast for FY2024/25 has been revised down from 4.2 to 3.7 per cent, Fitch’s BMI research unit said in a recent report, citing weaker performance in Q4 FY2023/24 and ongoing disruptions in the Suez Canal.

While the economy continues to recover, the slower pace of growth is expected to be offset by a rebound in non-oil exports and investment, which will keep growth above the 2.4 per cent rate seen in FY2023/24.

Moreover, the forecast for FY2025/26 expects growth to accelerate to 5.1 per cent, up from the previous forecast of 4.7 per cent, as Red Sea navigation normalises and the services sector strengthens due to easing geopolitical risks. Investment activity is expected to improve, driven by foreign investment and lower borrowing costs.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama

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