Egypt's Economy Projected To Grow 4 As Imf Reforms Take Hold

A Reuters poll revealed that Egypt's economy is set to grow by 4 in the fiscal year ending June 2025, with expectations of further acceleration to 4.7 in 2025/26 and 5.0 in 2026/27.

The improvement is attributed to reforms under the International Monetary Fund IMF programme.

This marks a recovery from 2023/24, when GDP growth dropped to 2.4 from 3.8 the previous year, impacted by a currency crisis and disruptions caused by the conflict in neighbouring Gaza. The war affected key revenue streams like the Suez Canal and tourism.

In March 2024, Egypt signed an 8 billion financial reform deal with the IMF, following a 24 billion agreement with a UAE sovereign wealth fund to develop a real estate investment project on the Mediterranean coast.

Economists remain optimistic. James Swanston of Capital Economics forecasted 5 growth for the current fiscal year, citing benefits from a weaker Egyptian pound, which has boosted export-oriented industries through enhanced global competitiveness.