Fitch Solutions raises its forecast for Egypt’s inflation by 6.4% in 2023

Egypt has been experiencing an inflationary wave since the onset of the war in Ukraine which sparked in March 2022, maintaining its double digits zone for months. This wave is mainly driven by the soaring prices of foodstuff as well as the global supply chain disruptions, in addition to the pilling up of imported goods in ports.

Egypt’s annual headline inflation rate accelerated in March to 33.9 percent in 2023, up from 12.1 percent in March 2022, and above the rate of 31.9 percent recorded a month earlier, according to the latest calculations published by the Central Agency for Public Mobilisation and Statistics (CAPMAS).

In its latest update on the World Economic Outlook, released in April, the IMF expected Egypt’s inflation to maintain its double digits position in both 2023 and 2024, projecting it to eventually slow down to 21.6 percent and 18 percent, respectively.

For the country’s real GDP growth, the Fitch report revised up its forecast for Egypt's real GDP growth to 3.4 percent in 2023, up from the 3 percent it projected a month ago.