World Bank maintains Egypt’s FY2024/25 GDP growth at 3.5%, raises FY2025/26 forecast to 4.2%

The World Bank (WB) has maintained its projection for Egypt’s real GDP growth in FY2024/2025 at 3.5 percent, as highlighted in its latest Global Economic Prospects report.

The report also indicates an upward revision for FY2025/2026, forecasting a growth rate of 4.2 percent.

The WB attributes this anticipated improvement to easing inflationary pressures, which are expected to boost domestic demand.

Private consumption is set to rise as inflation continues to decline, further supported by strong remittance inflows and enhanced economic sentiment.

Additionally, infrastructure investments, bolstered by financing from the United Arab Emirates, are projected to significantly contribute to Egypt’s economic growth.

In contrast, the International Monetary Fund (IMF) has recently downgraded its projections for Egypt’s real GDP growth.

In its World Economic Outlook (WEO) report released in January 2025, the IMF lowered its forecasts for FY2024/2025 and FY2025/2026 by 0.5 percent and 1 percent, respectively.

The IMF now expects growth rates of 3.6 percent for FY2024/2025 and 4.1 percent for FY2025/2026, down from earlier estimates of 4.1 percent and 5.1 percent.

The contrasting perspectives from the WB and IMF reflect differing views on the pace of economic recovery and the impact of inflationary trends on Egypt’s economy.

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