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Goldman Sachs predicts surplus in external financing

Remittances and reserves set to soar

What

Goldman Sachs forecasts a significant surplus in Egypt’s external financing over the next four years, projecting a surplus of USD 26.5 billion. This marks a notable departure from previous expectations of a USD 13 billion deficit. The turnaround is attributed to anticipated injections from the International Monetary Fund (IMF) and returns from the Ras El Hekma deal.

Other Key Predictions

Egypt’s foreign currency reserves are expected to experience a strong surge, reaching approximately USD 50 billion by the end of the year and soaring to nearly USD 61 billion by 2027.
Remittances from Egyptians abroad are also set to approach USD 30 billion by the close of 2027.
Egypt is projected to receive USD 5 billion in financing from the IMF and other partners in 2024, with similar figures expected in subsequent years, totaling USD 17 billion. This includes contributions from the IMF, the World Bank, and European financiers.
Regarding foreign direct investment, Goldman Sachs predicts a substantial increase, with projections soaring to USD 33 billion this year from USD 9.3 billion in the previous year. This surge is expected to accelerate, reaching USD 23.6 billion by 2027.