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AfDB expects Egypt's GDP growth at 4.8 percent for FY 2023/24

Egypt's GDP growth is expected to increase to 4.8 percent in FY 2023/24, up from 4.4 percent in the current FY.
27.05.23 | Source: Ahram Online

The government's IPO programme, estimated at $40 billion, is set to enable the private sector to grow, the report said.

However, the report warns that Egypt's reliance on large external financing is still constituting a substantial risk.

Last month, the IMF and the World Bank (WB) lowered their outlook for Egypt's growth whether for this FY or the upcoming one that will start in July.

The IMF revised its growth expectations to 3.7 percent from 4.4 for 2023, and to 5 percent from 5.3 for 2024.

The WB downgraded its forecasts for Egypt’s real GDP growth in FY 2022/23 and FY 2023/24 to 4 percent each of these two FYs, down from the 4.5 percent it projected in December of 2022.

Noteworthy, the Egyptian government targets a 4.1 percent growth rate for FY 2023/24.

Inflation downgraded

The AfDB report estimates Egypt's average inflation for the next FY at 14 percent, down from 20 percent for the full FY 2022/23, "as a result of high food and nonfood prices and the devaluation of the Egyptian pound against the US dollar."

The report states that Egypt accounts for most of the increase in the average inflation for the north African region.