Egypt's economy to grow 4.2% in FY 23/24: Morgan Stanley

Morgan Stanley revised down its forecast for lower growth in Fiscal Year (FY) 23/24 to 4.2% from 5%, “which in turn is driven by larger-than-expected import compression and subdued financial inflows leading to supply shortages,” the report stated.

In its “Egypt Economics, Sovereign Credit and Equity Strategy” report, the investment bank lowered Egypt’s current accounts deficit forecast to $9.8 billion for FY23 and $10.2 billion for FY2024.

In the report, Morgan Stanley also stated that The International Monetary Fund (IMF) is expected to conduct its first and second reviews of the Egyptian economy for the $3 billion four-year loan program between September and December 2023.