The International Monetary Fund (IMF) has updated its forecasts for Egypt's economy to 4.2% in 2023 and 3.6% in 2024.
Egypt’s economy reached 6.7% in 2022, according to the IMF in its World Economic Outlook report released in Marrakesh.
The report predicts that Egypt’s inflation will rise to 23.5% in 2023 and 32.2% in 2024.
The current account balance is projected to reach -1.7% of GDP in FY 2022/23, and -2.7% in 2024.
Additionally, the report suggests that unemployment rates in Egypt may reach this year 7.1% and rise to 7.5% next year from 7.3% in 2022.
The Fund tackles the financial year extending from July to the end of June of each year.
Egypt’s annual urban consumer price inflation rose to a historic high of 38% in September, climbing from 37.4% in August and topping analyst expectations, data from statistics agency CAPMAS showed on Tuesday.
It was the fourth consecutive month of record highs recorded on the central bank website, which has figures going back to 2000.
The median forecast of 18 analysts polled this week had shown annual urban consumer inflation rising to 37.6% in September.
The previous high, before inflation soared in June, was 32.95% recorded in July 2017.
Inflation also accelerated on a monthly basis, with prices rising by 2.0% compared with a 1.6% increase in August, Allen Sandeep of Naeem Brokerage said. It was their fastest pace of increase since June.
In September food and beverages climbed month-on-month by 3.6%, with vegetable prices surging by 19.2%, fruits by 5.4%, dairy products by 5.4%, and sugar items by 2.9%, Sandeep added.
Seeking to fight food inflation, the government said on Monday it had agreed with private producers and retailers to cut prices on staple foods by 15-25% and exempt them from customs duties for six months.
Rapid money supply growth over the last two years has helped prices to climb rapidly and the currency to lose almost half its value against the US dollar since March 2022. Many Egyptians have seen their living standards slide.
