Fitch Solutions revises Egypt’s real GDP growth slightly

Driven by the ongoing economic challenges caused by the Russian-Ukrainian conflict, the Egyptian government lowered its expectations for the country’s real GDP growth in the upcoming FY2022/23 — which starts on 1 July — to 5.5 percent, down from the 5.7 percent it previously projected.

The report also raised its projections for Egypt’s inflation to 13.2 percent, up from 10 percent, up from the 7.1 percent it expected in April, continuing the trend of being the country with the third highest inflation rate in the region following Lebanon (171 percent) and Iran (29 percent).

Since the onset of the war in Ukraine, Egypt’s inflation has passed double digits, hitting 10 percent in February.

According to the latest figures announced by the Central Agency for Public Mobilisation and Statistics (CAPMAS), Egypt’s headline annual inflation rate rose to 14.9 percent in April, up from the 12.1 percent recorded in March and 4.4 percent in the corresponding month in 2021.

As a result, inflation in urban areas jumped to 13.1 percent.