World Bank Raises Forecast for Economic Growth in Egypt

The World Bank has released its June Global Economic Prospect Report, where it has raised its forecast for Egypt’s economic growth to 6.1% - a 0.2% raise from its previous prospects of 5.9% growth, as reported last April when the economic effects of the Russian invasion of Ukraine were starting to be felt globally.

The report attributes the rise to “stronger-than-expected” economic activity in Egypt in the first half of 2022. Although it notes that rising inflation - which most people attribute to the war in Ukraine, specifically due to rising food and energy costs - has caused an abrupt slowdown of Egypt’s “robust growth” from the first half of the fiscal year.

It remains to be seen how recent developments in the energy sphere, namely an upcoming deal between Egypt and the European Union to export gas from Egypt to the bloc to reduce its reliance on Russian gas, will affect projections in the future.