2023-09-14 13:40:00
(Ecofin Agency) – The slight increase in expected growth, compared to the previous year, will mainly result from the increase in foreign investments and the increase in investment expenditure included in the state budget.
Fitch Solutions estimated, in a report published Tuesday, September 12, that the Egyptian economy is expected to record growth of 4.4% in fiscal year 2023/2024 (July-June) compared to 4.2% in fiscal year 2022/ 2023.
This expected slight increase in economic growth in the most populous country in the Arab world will mainly result from the increase in foreign investments from member countries of the Gulf Cooperation Council (GCC), which will be favored in particular by the launch of a program of privatization, and the increase in investment expenditure included in the State budget, the same source said.
A subsidiary of the Fitch Ratings agency specializing in research and analysis of financial data, Fitch Solutions also indicated that inflation will weigh considerably on household consumption, while imports will record a slight increase to cover shortages. of several basic products on the market.
The budget deficit is also expected to widen during the current financial year to reach 7.2%.
In this context, the Egyptian Central Bank would be obliged to increase its key rate by at least 100 basis points before the end of the fiscal year, and devalue the pound by around 20%.
Fitch Solutions also notes that the main threat to the Egyptian economy during the 2023/2024 financial year lies in the slowdown in foreign investment flows, particularly those from Gulf Cooperation Council countries.
Also read:
07/24/2023 – Egypt: economic growth reached 4.2% during the 2022/2023 financial year
05/19/2023 – Egypt: the EBRD lowers its economic growth forecast for the 2022/2023 financial year to 4%
23/12/2022 – Egypt: the World Bank forecasts a slowdown in economic growth during the 2022-2023 financial year, to 4.5%
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