EBRD expects Egypt’s real GDP growth for FY2022/2023 to reach 4%

The European Bank for Reconstruction and Development (EBRD) has revised its forecast for Egypt's real GDP growth for the current fiscal year to 4 percent, expecting it to rebound to 4.8 percent in the following fiscal year 2023/2024.

The EBRD released these updates in its Regional Economic Prospects report during its annual meetings held in Uzbekistan.

The report noted that increased gas exports, Egypt's role as an energy hub in the eastern Mediterranean, and the implementation of business-environment reforms supported by the International Monetary Fund (IMF) were the main factors for the positive outlook.

The bank also revised its forecast for Egypt's real GDP growth for 2023, lowering it to 4.2 percent from its previous prediction in February. It also raised its 2024 expectation to 5.2 percent, up from the previous estimate of 5 percent in February.

The report highlights that Egypt's real GDP growth slowed to 4.2 percent in the first half (1H) of the current fiscal year 2022/23 (July-December 2022), a significant decline compared to the 9 percent growth recorded in the same period of the previous fiscal year.

The EBRD noted that the slowdown was driven by a decline in the manufacturing and construction sectors due to foreign currency shortages, and reduced Suez Canal and tourism revenues.