Expectations of strong economic growth for Egypt

In its forecasts for the country, the European Bank for Reconstruction and Development noted that although Suez Canal revenues and the tourism sector are recovering, momentum is hampered by a slowdown in construction and manufacturing, coupled with a decline in gas production. .

But he noted that unemployment fell slightly to 7.0 percent in the second quarter of 2023.

As negative data, the entity also pointed to inflation that has reached record levels, and a shortage of foreign currency.

In the middle of this month, Hossam Haiba, Executive Director of the country’s General Authority for Investment and Free Zones, raised his growth expectations for the fiscal year 2023-2024 to 4.4 percent, three-tenths more than his previous analysis.

Haiba also raised its forecast for the next fiscal year from 4.7 percent to 5.0 percent.

The official stressed that these numbers are supported by better performance of the real estate and infrastructure sectors.

Last March, Finance Minister Mohamed Maait reduced the GDP growth rate for the current fiscal year from 5.5 to 4.1%.

Maait explained that the country’s authorities aim to achieve a primary surplus of 2.5% of GDP and 10% inflation.

In the same month, the IMF also revised the growth rate for this period to 4.0 percent.

In turn, Morgan Stanley expected in July that the Egyptian economy would grow by 4.2%.

OMR/ROB

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