The International Monetary Fund (IMF) has reaffirmed its forecast for Egypt’s real Gross Domestic Product (GDP) growth in the current fiscal year 2023/2024, ending on June 30, at 3%, with a projected recovery to 4.4% in the following fiscal year. However, these projections hinge on Egypt fulfilling its obligations under the IMF loan program agreement, which targets addressing imbalances in the public budget and monetary and fiscal policies. This includes transitioning to a flexible exchange rate system to enable Egypt’s economy to adapt more effectively to external shocks, facilitating exports for Egyptian businesses, and promoting increased investment. Loan boost Recently,…
Author: Doaa A.Moneim
The International Monetary Fund (IMF) has maintained its forecast for Egypt’s real gross domestic product (GDP) growth in 2024 at 3%, consistent with its January projection. However, this projection reflects a 0.8% decrease from the estimate for 2023. GDP growth According to the World Economic Outlook (WEO) report released Tuesday, the IMF anticipates Egypt’s GDP growth to rebound to 4.4% in 2025. The Fund attributed its outlook to the tightening of the monetary policy and the appreciation trend of the local currency. The IMF had predicted earlier that Egypt’s GDP growth will drop to 3% in the current fiscal year…
Egypt plans to launch two mobile applications in July to tackle price inconsistencies and enhance transparency in the local market regarding commodity pricing, according to a statement released in April by the Egyptian cabinet. These apps aim to empower users to access and report commodity prices, fostering a more informed consumer experience. Regulating markets One of the two applications, the “Price Radar App,” will allow users to easily search for and compare prices of different items at nearby stores. Users can actively contribute by adding information such as item prices, store names, and locations, thereby enriching the database and improving…
Development grants totaling $178 million were utilized across five pillars during the inaugural Joint Steering Committee Meeting co-chaired by the Ministry of International Cooperation and the United Nations Resident Coordinator in Egypt, according to a joint statement released in March. Significant progress in implementing the Egypt-United Nations Sustainable Development Cooperation Framework 2023-2027 was highlighted in the statement, focusing on fostering human capital, sustainable economic development, climate resilience, governance, and women’s empowerment. Rania Al-Mashat, Minister of International Cooperation, highlighted the importance of multilateral cooperation demonstrated by the partnership between Egypt and the UN. She also emphasized that development grants from bilateral…
Post for Investment (PFI), a subsidiary of the state-run Egypt Post Authority, has unveiled plans to establish a new $5 billion subsidiary dedicated to asset management within the country by 2025, according to a statement released on April 3. The company has reportedly secured preliminary approvals for licensing, with final approvals anticipated during the second quarter of 2024, according to local media. The decision to establish a new asset-management arm aligns with the company’s strategy to enhance its activities and broaden its reach in asset management within Egypt, CEO Ahmed Ali has said. It also aims to manage financial portfolios…
In November, Visa, a digital payment solutions provider, and CIB, a leading private-sector bank, unveiled recipients of the She’s Next grant program in Egypt. Among the standout winners were Hadeer Shalaby, founder of Green Fashion; Salma Tammam, the innovative mind behind Reme-D; and Nihal Ali, the visionary founder of Fincart. Launched in Egypt in October, the program aims to empower women-owned small businesses nationwide through funding, personalized coaching, and mentorship. The top three winners receive $10,000 each, while the next five gain access to a year-long training program. Further, the first 20 applicants are granted enrollment in a one-year skills…
Egypt’s Purchasing Managers’ Index (PMI) for the non-oil private sector saw a slight improvement in March, rising to 47.6 from 47.1 in February, according to S&P Global’s monthly report. However, despite this uptick, the new reading indicates significant deterioration in the sector’s health, remaining below the average reading since April 2011. PMI serves as a composite gauge designed to provide a single-figure snapshot of operating conditions in the non-oil private sector economy. Egypt’s non-oil private sector continued to face worsening conditions in March, with both business activity and new orders volumes dropping at rates similar to those recorded in February.…
Interest rates in Egypt are expected to remain unchanged until the end of the current fiscal year 2023/2024, which concludes at the end of June. This follows the recent significant actions taken by the Central Bank of Egypt (CBE), including a notable increase in key interest rates and the nearly unrestricted flotation of the Egyptian pound, representing the largest policy adjustment by the CBE since initiating monetary tightening measures in response to the repercussions of the Russia-Ukraine conflict in March 2022. The Monetary Policy Committee (MPC) is set to convene for the final time in the current fiscal year on…
Egypt has taken several actions to address the significant economic imbalances it has faced over the past two years, including measures to curb activity in the currency parallel market, commonly known as the black market, by securing substantial amounts of finances in US dollars and floating the local currency. In discussions with Business Monthly, Ahmed Derbala, assistant professor at the School of Social Sciences at Heriot-Watt University Dubai, highlighted the significant risks that black markets pose to a nation’s economic progress. He noted that these markets often operate outside government oversight and regulations, facilitating tax avoidance and undermining economic stability.…
Egypt raised the price of a range of petroleum products on Friday in line with a pledge it made to the International Monetary Fund (IMF) under an $8 billion financial support package. Petrol prices up In a letter of intent signed in November 2022, Egypt promised the IMF that it would allow domestic fuel prices to rise to match international energy costs. The Automatic Pricing Committee for Petroleum Products raised petrol prices by 2 cents (EGP 1.00) per liter to 24 cents (EGP 11) for 80 octane grade, 27 cents (EGP 12.5) for 92 octane grade, and 29 cents (EGP…