São Paulo – The Egyptian economy could contribute 1.7% to global economic growth over the next five years, according to a calculation by Bloomberg based on data released in the International Monetary Fund’s (IMF) World Economic Outlook. The news was published on the Saudi news website Arab News.
This places the country among those that will most contribute to the expansion of the global economy until 2028. China is estimated to be the most significant growth driver over the next five years, with a 22.6% share. Next come India and the United States, which are expected to contribute 12.9% and 11.3%, respectively, according to the calculation.
According to IMF projection, Egypt’s economy could expand by 3.7% in the current fiscal year. Earlier this month, the financial institution lowered the country’s previous growth forecast; at 4%. The IMF report mentions that Egypt’s inflation is expected to reach 21.6% in 2023 before falling to 18% next year.
Credit agency S&P Global downgraded Egypt’s outlook to negative, despite maintaining its long and short-term foreign and local currency sovereign credit rating at B/B. The measure was attributed to the risk the country would not be able to stabilize its exchange rate and attract foreign currency inflow to guarantee external financing.
Last weekend, the Minister of Finance of Egypt, Mohamed Maait, attributed the downgrade to external pressures on the country’s economy. The economic reverberations of the war in Ukraine have generated unprecedented inflation in Egypt, Maait said, adding the government is continuing its reform program supported by the IMF, and a package of financial, monetary, and structural measures will be implemented.
Translated by Elúsio Brasileiro
