Egypt’s real GDP growth to slow to 3% in 2023 as higher inflation looms

In FY 2021/2022, Egypt’s real GDP growth rose to 6.6 percent, up from 3.3 percent in the previous fiscal year, according to the Ministry of Planning and Economic Development.

This means that Egypt’s real GDP growth is expected to go below the level seen in FY 2020/2021, which witnessed the outbreak of the coronavirus pandemic.

Egypt has recently announced that it targets to restore real GDP growth to between 5.5 and six percent through FY 2025/2026 gradually.

In late December, Egypt signed $3 billion laon deal with the International Monetary Fund (IMF) which aims to tackle the imbalances in the country's macroeconomy and budget suffer as a result of the repercussions of the war in Ukraine.

In its update on the World Economic Outlook report released last week, the IMF revised down its projections for Egypt’s real GDP growth in FY 2022/2023 (ends by end-June) by 0.4 percent to four percent compared to the fund’s October projections.

The Fitch report said inflation in Egypt is expected to record an average of 18.3 percent in 2023, before moderating to six percent through 2027.