Egypt’s economy likely to grow by 4.2% next year, says minister

By Thomson Reuters Jun 2, 2024 | 2:27 PM

CAIRO (Reuters) – Planning Minister Hala al-Saeed predicted Egypt’s economy would grow by 2.9% or 3% in the financial year to end-June before accelerating to 4.2% in 2024/25, according to a ministry statement released on Sunday.

The growth would come from investment spending, net exports and imports and consumer spending, Saeed said.

During International Monetary Fund (IMF) talks in Washington on April 16, Finance Minister Mohamed Maait predicted 2.8% growth this year and 4.2% in 2024/25.

The economy had been dragged down by a chronic lack of foreign currency. But that has been alleviated by a $24 billion real estate deal with the United Arab Emirates in late February, plus a sharp devaluation of the currency and the signing of an $8 billion agreement with the IMF in early March.

The central bank on May 23 said growth had slowed to 2.3% in the fourth quarter of 2023 from 4.2% a year earlier and that indicators suggested growth would remain subdued in Jan-March 2024.

(Writing by Patrick Werr; Editing by Andrew Cawthorne)