In its forecast for the country, the European Bank for Reconstruction and Development noted that despite the recovery in revenues from the Suez Canal and the tourism sector, momentum will be affected by a slowdown in construction and manufacturing, as well as a decline in gas production.
However, he emphasized that unemployment fell slightly to 7.0 percent in the second quarter of 2023.
The company also cited record inflation and the lack of foreign exchange as negative data.
Midway through this month, Hossam Heiba, chief executive of that country’s General Investment and Free Zone Authority, raised his growth forecast for the 2023-2024 fiscal year to 4.4 percent, three-tenths higher than his previous analysis.
Heiba also raised its forecasts for the next financial year from 4.7 percent to 5.0 percent.
The official stressed that these figures were supported by better performance of the real estate and infrastructure sectors.
Last March, Finance Minister Mohamed Maait reduced the gross domestic product (GDP) growth rate for this fiscal year from 5.5 to 4.1 percent.
Maait then explained that the country’s authorities are targeting a primary surplus of 2.5 percent of GDP and inflation of 2.5 percent.
In the same month, the International Monetary Fund also revised the growth rate for this period to 4.0 percent.
In July, Morgan Stanley estimated that the Egyptian economy would grow by 4.2 percent.
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