
Arab FinanceThe International Monetary Fund lowered its forecasts for the growth of the Egyptian economy for the current year and next year. A growth rate of 3.6% was expected, with a decline of 0.5%. From the forecast issued last October, it also lowered its forecast for 2026 to 4.1%, a 1% decline from its previous forecast.
According to the World Economic Prospects Update report, the Fund expects that growth rates in emerging market and developing economies during the current and next two years will witness a largely similar performance in 2024, and in the Middle East and Central Asia region, growth rates are expected to rise, but to a lesser extent than expected in October. the past.
The Fund expects that the volume of global trade will witness a limited decline during the current and next years. This is due to the sharp increase in uncertainty regarding trade policies, which is likely to harm investment disproportionately among companies with intense trade activity.
The Fund expects that the inflation rate will decline towards the central banks’ goals, as the inflation rate in the United States this year will reach 2%, albeit slightly higher, and with expectations that the inflation rate will remain low in China, and thus the gap between the expected basic interest rates in the United States and other countries will decrease. The other will expand.
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