World Bank cuts forecast for Egypt’s GDP growth in FY2023/24

Updated 4/16/2024 7:33:00 AM
World Bank cuts forecast for Egypt’s GDP growth in FY2023/24

Arab Finance: The World Bank Group (WBG) has downgraded its projection for Egypt’s real gross domestic product (GDP) growth for the current fiscal year (FY) 2023/2024 to 2.8%, down from a previous forecast of 3.5%, according to the bank’s April 2024 MENA Economic Update.

The WBG also forecasted Egypt’s GDP growth to hit 4.2% in FY 2024/2025, up from a previous projection of 3.9%.

In addition, the bank expects the country’s budget deficit to widen to 6.5% of GDP in FY 2024/2025, up from 6% in 2023/2024, “as tax revenue shrinks from a slowing economy while interest payments rise because of a devalued currency and monetary tightening.”

The report showed that these downgraded projections “assume that the conflict in the Middle East will not expand,” stating that “If fighting were to worsen or continue for a protracted period, external account deficits in countries neighboring Gaza could be exacerbated by declining tourism”.

It also highlighted that Egypt could experience a further decline in revenues from the Suez Canal as more shipping would reroute from the Red Sea, it added.


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