Cairo – The International Monetary Fund (IMF) forecasts that Egypt’s growth reaches 5.9% in FY2021/22, up from 3.3 in the previous period. The IMF also expected Egypt’s GDP to grow 5% in FY2022/2023, according to its latest World Economic Outlook issued Tuesday (19) in the wake of the Spring Meetings of the IMF and the World Bank.
Meanwhile, the IMF raised its expectations for the average inflation rate this year to reach 7.5%, up from 2020/2021 4.5%, climbing to 11% in the next FY due to the consequences of the Ukraine-Russia war.
Unemployment rate
The IMF also improved its forecast for the unemployment rate this year to 6.9%, down from 7.3% in the last FY.
Planning and Economic Development minister Hala El-Said had revised down the Egyptian growth expectations in late March for the current FY to approximately 5.7% from 6.4% due to the repercussions of the Russia-Ukraine war and its effects on inflation rates and global growth. El-Said revised down the GDP growth to 5.5% in the next FY from 5.7% due to the repercussions of the war.
The 2022 Spring meetings between the IMF and the World Bank are taking place virtually from April 18 to 24.
The IMF reported that it expects the participation of presidents of Central Banks, ministers of Finance and Development, private sector authorities, representatives of civil organizations and scholars in the Spring Meetings of the IMF and the Boards of Governors of the World Bank.
According to the report, the war in Ukraine created an expensive humanitarian crisis and a peaceful solution must be found, as the economic damages ushered in by the conflict will contribute to a significant slowdown of the global growth in 2022.
Translated by Ahmed Samir and Guilherme Miranda
