The International Monetary Fund (IMF) has revised its growth projections for the Egyptian economy on Tuesday 30 January, reflecting the challenges faced by the country.
According to the recent World Economic Outlook report, published on Tuesday 30 January, the IMF lowered its growth expectations for Egypt in the current fiscal year to three percent, down from the previous estimate of 3.6 percent in October. Additionally, the IMF reduced its growth expectations for 2025 to 4.7 percent, down from five percent.
This marks the third time that the IMF has revised its growth expectations for Egypt, highlighting the significant pressures the country is facing, particularly due to a currency crisis.
The report also revealed a reduction in growth expectations for the Middle East and Central Asia region. The estimated growth rate for the region in 2024 is now 2.9 percent, down 0.5 percent from the previous projection in October. However, the IMF forecasts a slight recovery in 2025, with an expected growth rate of 4.2 percent.
The economic challenges in Egypt are multifaceted, including a severe shortage of the US dollar, rising prices of essential goods and services, and weak foreign direct investment (FDI) inflows.
In response to the economic difficulties, an IMF mission is currently in Egypt to discuss the possibility of providing additional financing to support the country’s economy. The mission aims to address the repercussions of global and regional tensions that have further compounded Egypt’s economic woes.
The reports suggest that efforts to stabilize the currency, attract foreign investments, and implement policies that promote economic growth will be crucial in navigating the challenges and fostering a path toward sustainable development.