IMF lowers forecast for Egyptian economy growth in 2023 to 3.7%

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On Tuesday, the International Monetary Fund issued a report in which it again lowered its forecast for the growth of the Egyptian economy in the current fiscal year to 3.7%. Last year, the IMF expected the Egyptian economy to grow by 5%, then lowered its forecast last July to 4.8%, then lowered it last January to 4% before lowering it again this week. Also, the IMF lowered its growth forecast for the next fiscal year, 2023/2024, to 5%.

The Egyptian pound lost almost 32% of its value last year, according to the World Bank, which stated on Thursday that Egypt had higher inflation levels than most other nations in the Middle East and North Africa region. According to a new report by the international financial institution, Egypt ranked third among the nations regarding food prices, which increased by 26%. It said that a 1% increase in food prices would cause 500,000 people to become impoverished.

Egypt has resorted to various policies to contain inflation, including increasing food and fuel subsidies, imposing price controls, regulating trade, and providing cash assistance within social protection programmes.  However, the report says how these strategies will curb inflation is still being determined. According to the international organization, 6.9 million Egyptians will experience extreme food insecurity in 2023.