Executive Summary
The economy of Egypt faced tough times in 2023 which is continuing in the first half of 2024, especially with the large external debt repayments, lack of foreign currency reserves, disruptions in trade activity caused by geopolitical tensions in the region, and low private sector contribution to the GDP. However, the economic environment of the country is expected to improve in the coming years. Real GDP growth is expected to consistently increase to 5.5% and inflation is expected to cool down to 6.4% by 2028 with stability in the economy. The exchange rate is expected to be determined by market forces with no involvement from the government, averaging around 50 EGP/USD in the 2024-2028 period and ensuring disbursement of funds from the IMF, improving the foreign currency reserves, and ensuring lack of default on debt repayments.
