The Egyptian government has reduced its target for growth in the next fiscal year, 2022-2023, to 4.5% after it had expected last March that it would reach 5.5%. This came during statements by Prime Minister Mostafa Madbouly while participating in a conference organized by the Egyptian American Chamber of Commerce. The Egyptian economy was hit after the Russian invasion of Ukraine prompted foreign investors to flee emerging markets. Russia and Ukraine were also significant exporters of wheat to Egypt and significant sources of tourist influx.
Madbouly added that the government estimated the direct and indirect cost of the Russian-Ukrainian war on the state budget annually at about 465 billion pounds. The growth of the Egyptian economy for the past fiscal year 2020-2021 was 3.3%.
The International Monetary Fund had expected inflation rates to rise this year from 6.3% to 7.5%. It also lowered its forecast for the growth rate of the Egyptian economy during the next fiscal year from 5.6% to 5%.