IMF’s Azour: Gaza war has necessitated Egypt growth forecast revision

The Gaza war has necessitated the International Monetary Fund (IMF) team to review forecast for Egypt’s real GDP growth, senior IMF official told Amwal Al Ghad English on Wednesday.

This has led the IMF in its updated World Economic Outlook (WEO) report to lower its projections for the country’s real GDP growth in the current financial year 2023/2024 to 3 per cent, said Jihad Azour, director of the IMF’s Middle East and Central Asia Department. In its October WEO report, the IMF projected the country’s economy to growth 3.6 per cent.

Azour made these remarks during a virtual press conference discussing the Fund’s Regional Economic Outlook for the Middle East and North Africa, January 2024 Update.

Earlier in November, on the sidelines of the Asia Pacific Economic Cooperation Summit, IMF Managing Director Kristalina Georgieva told Reuters the Fund was “seriously considering” a possible augmentation of Egypt’s $3 billion loan programme due to economic difficulties posed by the Israel war in Gaza.

Georgieva explained that the war was “devastating” Gaza’s population and economy and has “severe impacts” on the West Bank’s economy and is also posing difficulties for neighbouring countries Egypt, Lebanon, and Jordan through the loss of tourism and higher energy costs.