Egypt’s Inflation May Increase By 32.3% in 2023; Fitch Solutions
Fitch Solutions has raised its forecast for Egypt’s inflation in 2023 to 32.3 percent, up from an average of 25.9 percent that it expected a month ago, according to Ahram Online
Egypt has been going through an inflationary upsurge since the outbreak of the Ukrainian conflict in March 2022, with inflation remaining in the double digits for months. This wave is mostly driven by rising food costs, as well as global supply chain disruptions and the piling up of imported products at ports.
Moreover, Egypt’s annual headline inflation rate accelerated in March to 33.9 percent in 2023, up from 12.1 percent in March 2022, and above the rate of 31.9 percent recorded a month earlier, according to the latest calculations published by the Central Agency for Public Mobilisation and Statistics (CAPMAS).
In its latest update on the World Economic Outlook, released in April, the IMF expected Egypt’s inflation to maintain its double digits position in both 2023 and 2024, projecting it to eventually slow down to 21.6 percent and 18 percent, respectively.
For the country’s real GDP growth, the Fitch report revised up its forecast for Egypt’s real GDP growth to 3.4 percent in 2023, up from the 3 percent it projected a month ago.
