The Information and Decision Support Center (IDSC), affiliated with the Egyptian Cabinet, released a report on Friday analyzing "International Institutions' Expectations for the Performance of the Egyptian Economy in 2025."
International institutions, including the IMF and the World Bank, predict growth rates between 3.5% and 4.5% © Mena Today
The Information and Decision Support Center (IDSC), affiliated with the Egyptian Cabinet, released a report on Friday analyzing "International Institutions' Expectations for the Performance of the Egyptian Economy in 2025."
This report highlights the global economic challenges of 2024 and outlines a cautiously optimistic outlook for Egypt as it navigates these turbulent times.
The report noted that 2024 was marked by economic instability, stemming from global and regional geopolitical tensions, restrictive monetary policies aimed at combating inflation, and persistent disruptions in supply chains still recovering from the COVID-19 pandemic.
The Russian-Ukrainian conflict and heightened tensions in the Middle East further exacerbated these issues.
Despite these challenges, international institutions anticipate a gradual recovery in the global economy in 2025. The International Monetary Fund (IMF) projects global growth rates to remain steady at 3.2% in 2025, unchanged from 2024, though below pre-pandemic averages.
Amid global uncertainties, the Egyptian economy is poised for improvement in 2025. According to the IDSC report, reforms enacted by the Egyptian government are expected to fuel growth, driven by increased investments, higher private consumption, and a decline in inflation.
International institutions, including the IMF and the World Bank, predict growth rates between 3.5% and 4.5%, a significant improvement over the 2.7% growth expected for 2024.
This anticipated recovery is attributed to various factors, including the development of the Ras El-Hikma area, easing geopolitical pressures by late 2024, and structural reforms aimed at improving Egypt's business environment.
The IMF predicts that Egypt's economic growth will accelerate to approximately 5% during the period 2025-2029. These projections underscore the benefits of structural reforms, which are expected to enhance the country’s investment climate and overall economic resilience.
The World Bank also foresees a steady recovery for Egypt, projecting GDP growth of 3.5% in 2025 and 4.2% in 2026. Private consumption is expected to grow by 4.8% in 2025, fueled by increased remittances and investments linked to initiatives like the Ras El-Hikma agreement.
The report juxtaposes Egypt's outlook against global trends. While advanced economies are predicted to see marginal growth improvements, reaching 1.8% in 2024 and 2025, developing and emerging economies face a slight downgrade, with growth rates of 4.2% compared to 4.4% in 2023.
The downward revision reflects challenges such as supply disruptions, geopolitical conflicts, and climate-related adversities.
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