Fitch Solutions expects Egypt’s economic growth to improve in the fiscal year 2023-2024, raising its growth forecast to 4.4% in the current fiscal year, up from 4.2% in FY 2022-23.
Fitch’s report published by Amwal Al-Ghad showed many positive expectations related to Egyptian economic affairs, the most prominent of which was the expectation that the value of remittances of Egyptians abroad officially registered will increase by up to 10% during the current fiscal year to reach $25.6 bln by the end of June 2024, compared to $23 bln by the end of June 2023.
The company further expects the central bank’s monetary policy committee to issue a decision to raise interest rates by 1% before the end of the year.
On her part, Ms. Dina Abdel Fattah, Editor-in-Chief of Amwal Al-Ghad, Chairman of Exlnt Communication and Founder of the Top 50 Women Forum, Shared in a telephone interview with Extra News and Al-Qahera News her insights regarding the importance of this report on the Egyptian economy in the coming year.
She explained the impact of expectations emerging from international rating institutions on the foreign investors’ interest in the Egyptian market and said that positive expectations attract more investments and reassure foreign investors and capital flows to the Egyptian market.
Abdel Fattah added that the measures taken by the Egyptian state during the previous period were all in a positive direction that attracted foreign investors.
She expressed her pride with the succession in selling Egyptian investments to foreign investors, which is taking place at the current stage, of which we have already implemented about one and eight out of ten billion dollars and target five and a half billion dollars by next July, reflecting the confidence of the foreign investor in the Egyptian market.
She also highlighted that Egypt has successfully paid the installments due from debts, which reached about $ 52 billion in about 48 months, of which $ 25.6 billion in the six months confirms that the Egyptian economy and the Egyptian state can pay its debts and obligations, especially after being subjected over the past three years to severe pressure due to continuous shortage of foreign currency, inflationary pressures, in light of high indebtedness, as well as the negative repercussions of the Ukrainian war and the increase in prices in basic food and energy imports.
Moreover, Ms. Dina underlined the rapid growth of the Egyptian economy despite the slow pace of growth worldwide, which enables foreign investors to achieve profitable returns of up to 25%.
And commenting on Egypt’s accession to the BRICS, Abdel Fattah said that the bloc’s aim to reduce intra-US dollar transactions will definitely ease pressure on foreign exchange in Egypt, of which the dollar represents the largest share, which is in favor of improving a number of local economic indicators.
She finally concluded that if the group implements its plan to start trading between members in local currencies, this will ease the dollar pressure on the Egyptian economy as Egypt imports more than 70% of production inputs.
Written by Dina Abdel Fattah
