The clap:
In line with its April projections, the World Bank Group (WBG) is forecasting Egypt’s real GDP growth will hold steady at 2.8% in fiscal year (FY) 2023-2024, and expects an expansion to 4.2% for FY 2024-2025, and one at a 4.6% clip for the following year, according to the Global Economic Prospects report.
In context:
Egypt’s growth outlook is higher than the global average projection for 2024, which WBG expects will be maintained at 2.6% in 2024, before seeing an 0.1% uptick in both 2025 and 2026.
The catalyst :
The bank attributed the rebound in real GDP growth in FY 2024/2025 and FY 2025/2026 to the USD 35 billion Ras El-Hekma that was signed in February with the UAE.
What else?
According to the report, Egypt’s private consumption is anticipated to increase as a result of a rise in remittances — which is expected to jump 10% annually through 2030 — and an anticipated drop in inflation next year.
An exports hike following EGP devaluation?
WBG also highlighted that the exchange rate decline following the devaluation of our currency in March is expected to support net exports and promote economic growth.
AND- The AFDB’s inflation projections are also in:
Inflation rates in Egypt will decline by about 13 percentage points in 2025, reaching 23% compared to 36% in 2024, according to the African Development Bank’s Economic Prospects report.
