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Egypt’s average inflation to decline to 27.4 percent in 2024: Report

 

The report based its prediction on measures expected to be taken by the Central Bank of Egypt (CBE) to stabilize the exchange rate of the pound in the coming months. 

Egypt’s annual headline inflation decelerated to 36.4 percent in November, down from 38.5 percent in October, according to the official statistics agency CAPMAS. 

However, the report downgraded its growth prediction for FY2023/2024 (which starts in July 2023 and ends in June 2024) to 4.2 percent, compared to earlier estimations of 4.4 percent, due to the potential impact of the Gaza war on the Egyptian economy.

“The war has already resulted in a significant drop in Egypt’s gas imports from Israel, which is used for liquefied natural gas exports, thus weighing on Egypt's exports. [It has also added] another layer of uncertainty for conducting business in Egypt, encouraging investors to adopt a ‘wait-and-see’ approach,” the report said.

Earlier in December, the Egyptian Ministry of Planning and Economic Development revised its growth projection for FY2023/2024 to 3.5 percent from 4.2 percent.

During FY2022/2023, Egypt’s total exports declined to $39.62 billion from $43.9 billion in FY2021/2022. Meanwhile, total imports decreased to $70.78 billion from $87.3 billion.