Thursday June 13th, 2024
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Egypt's Economy Set for 4.2% Growth in 2024-2025 Fiscal Year

In April 2024, the net foreign assets deficit decreased by USD 586 million to USD 3.68 billion.

Cairo Scene

Egypt's Economy Set for 4.2% Growth in 2024-2025 Fiscal Year

Egypt’s economy is projected to grow by 4.2% in the 2024-2025 fiscal year, fueled by increased investment spending, stronger net exports, and higher consumer spending. The economy is expected to grow by 2.9% to 3% in the current financial year ending June 2024 before accelerating next year. The Ministry of Finance meanwhile forecasted a 2.8% growth for the current fiscal year, and 4.2% growth for 2024-2025, during discussions with the International Monetary Fund (IMF) in Washington.

The country’s foreign currency shortage has been mitigated by significant financial developments, including a USD 24 billion real estate deal with the United Arab Emirates in February and an USD 8 billion agreement with the IMF in March, alongside a devaluation of the Egyptian pound. Despite these trends, economic growth slowed to 2.3% in the fourth quarter of 2023, down from 4.2% a year earlier, as reported by the Central Bank of Egypt (CBE).

There have been notable improvements in Egypt’s financial indicators. In April 2024, the net foreign assets deficit decreased by USD 586 million to USD 3.68 billion, following the receipt of an USD 820 million loan installment from the IMF. Additionally, the trade balance deficit decreased by 23.2% year-over-year to USD 2.37 billion in March 2024. In May 2024, the CBE decided to maintain its interest rates unchanged, with the overnight deposit rate at 27.25%, overnight lending rate at 28.25%, main operation rate at 27.75%, and discount rate at 27.75%.

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