The International Monetary Fund (IMF) has projected Egypt’s GDP growth to rebound, reaching 4.1 percent in the fiscal year 2025/2026, up from a forecasted 2.7 percent for the current fiscal year (2024/2025), according to its latest World Economic Outlook report. The rebound marks a downward revision from the IMF’s July projection, which had predicted 4.1 percent growth for FY2024/2025, representing a 1.4 percent reduction. On a more positive note, Egypt achieved real GDP growth of 3.8 percent in FY2023/2024, surpassing the IMF’s earlier estimate of 2.7 percent. The IMF’s Executive Board is set to review Egypt’s USD 8 billion (EGP 390.4 billion) loan program in November, and approval of this review will release USD 1.3 billion (EGP 63.4 billion), the largest tranche of the loan. Inflation remains a concern, with consumer prices in Egypt reaching 24.4 percent in FY2023/2024. The IMF expects inflation to rise further to 33.3 percent in FY2024/2025 before easing to 21.2 percent in FY2025/2026. Annual headline inflation edged up to 26 percent in September, though core inflation slightly declined to 25 percent. The IMF also forecasts Egypt’s current account balance to remain negative, with projections of…
