Arab Finance: The World Bank reduced its growth forecast for the Egyptian economy to 3.5% in the current fiscal year 2024/25, a decrease of 0.7 percentage points from its forecast last June of 4.2%, according to The bank said in its semi-annual growth report in the region Middle East and North Africa.
The World Bank expects Suez Canal revenues to decline to $4.8 billion in the current fiscal year, i.e. nearly half of the $8.8 billion recorded during the fiscal year 2022/23, and a decrease of 27% from the $6.6 billion recorded in the fiscal year 2023/2024. . This comes with the worsening risks in the Red Sea, which has prompted shipping companies to avoid crossing the canal. In addition, “uncertainty looms over portfolio investments, increasing investor concerns in the region.”
He also warned that his forecasts were made “on the assumption that the conflict will not worsen,” explaining that if the scope of the conflict expands, it could lead to “negative repercussions” that could significantly affect growth – as further escalation would affect business and consumer confidence, tourism and flows. External affairs and financial conditions.
He added that despite the reduction in growth expectations, they are still higher than the bank and government expectations for the last fiscal year, which amounted to 2.5% and 2.4%, respectively.
Related news
