4.8% growth in the Egyptian economy at the end of the year

A Reuters report revealed that the Egyptian economy will grow by 4.8% in the current fiscal year.

The expectations follow the approval last month of a $3 billion package from the International Monetary Fund.

The war in Ukraine

Egypt resorted to the International Monetary Fund after the war in Ukraine damaged the tourism sector, raised commodity prices and prompted foreign investors to withdraw about $20 billion from the financial markets in Egypt.

 The survey predicted for the next three years growth of 4.5, 5.3 and 5.4 percent, which is lower than the government's medium-term expectations.

The government said that in the medium term, with the easing of current pressures and the implementation of the structural reform agenda, growth is expected to pick up to between 5.5 and 6 percent.

Annual inflation in Egypt

The Central Agency for Public Mobilization and Statistics said this month that annual inflation in Egypt rose to 21.3 percent in December, the highest level in 5 years, hit by a weak currency and restrictions on imports.

Economists expected the Egyptian pound, which reached 29.90 per dollar yesterday, to rise to 26.24 pounds per dollar by the end of June 2023.

The survey indicates a decline in the rate of return on overnight lending at the central bank, which currently stands at 17.25%, to 15.00% by the end of June before falling again to 9.75% by June 2026.

The Egyptian government had taken many measures over the past months to reduce the demand for dollars and support the Egyptian pound.

• Government action to support the economy

1. The Russian Central Bank also adopted the Egyptian pound as one of its main currencies, which would reduce the demand for the dollar

2. The import bill decreased in exchange for the increase in exports, which supports the strength of the Egyptian economy

3. Release of goods accumulated in Egyptian ports

4. The government also released the goods accumulated in the Egyptian ports