Egypt’s economy forecast to grow by 4.2 percent

Dr. Hala Elsaid, Egypt’s Minister of Planning and Economic Development, has predicted that the country’s economy will grow by 2.9 percent or 3 percent in the financial year ending June 2024, before accelerating to 4.2 percent in the 2024/25 fiscal year. 

According to a statement released by the Egyptian Ministry of Planning, Dr. Elsaid attributed this growth to increased investment spending, stronger net exports, and higher consumer spending.

In separate comments made during talks with the International Monetary Fund (IMF) in Washington, Finance Minister Mohamed Maait forecast 2.8 percent economic growth for Egypt in the current fiscal year, followed by 4.2 percent growth in 2024/25.

Alleviating foreign currency shortage

Egypt’s economy had previously been weighed down by a severe shortage of foreign currency. However, this situation has been alleviated by a $24 billion real estate deal with the United Arab Emirates (UAE) in late February, as well as a significant devaluation of the Egyptian pound and the signing of an $8 billion agreement with the IMF in early March.

Subdued economic growth in Q4 2023 and Q1 2024

Despite these positive developments, the Central Bank of Egypt (CBE) reported that economic growth slowed to 2.3 percent in the fourth quarter of 2023, down from 4.2 percent a year earlier. The bank’s indicators suggest growth will remain subdued in the January-March 2024 period.