A Reuters poll showed that the Egyptian economy will grow by 4.8% in the current fiscal year, faster than the government expected.
These expectations come from the US agency following the approval last month of a $3 billion package of International Monetary Fund After the war in Ukraine hit tourism, it raised commodity prices and prompted foreign investors to withdraw some $20 billion from Egypt’s financial markets.
The median forecast in a January 9-24 Reuters poll of 18 economists for the fiscal year ending June 30 was higher than the 4.0% growth projected by the government in its November 30 letter of intent to the IMF.
However, in the subsequent three years, the survey forecast growth of 4.5%, 5.3%, and 5.4%, below the government’s medium-term projections.
“In the medium term, as immediate pressures recede and the structural reform agenda is implemented, growth is expected to pick up to between 5-1/2% and 6%,” the government said.
Economists also predicted that the Egyptian pound, which is facing difficulties against the dollar, will improve its position, rising to 26.24 per dollar by the end of June 2023, but it may decline again to 28.50 by June 2024.
