CAIRO: Economic growth in Egypt is anticipated to accelerate between 3.5% and 4.5% in 2025, as indicated by a new report from the Information and Decision Support Center (IDSC) affiliated with the Egyptian Cabinet. The report highlights the potential for recovery amid ongoing global economic challenges and geopolitical tensions, with substantial contributions expected from government-led economic reforms.

According to State Information Service Egypt, the IDSC’s report outlines that the global economy faced significant hurdles in 2024, with lingering effects in various nations. These challenges stem from geopolitical tensions and stringent monetary policies aimed at curbing inflation, alongside unresolved supply chain disruptions following the Covid-19 pandemic and the Russian-Ukrainian crisis. Despite these issues, Egypt’s economic outlook for 2025 remains positive, buoyed by the state’s efforts towards economic stabilization and sustainable growth.

International institutions have shown optimism regarding E
gypt’s economic trajectory, attributing expected growth to ongoing governmental reforms poised to boost investments and private consumption. A decline in inflation and increased remittances from overseas workers are also factors contributing to this optimistic forecast. The International Monetary Fund (IMF) projects that Egypt’s economy will grow by 4% in 2025, an improvement from the anticipated growth of 2.7% in 2024.

The report further predicts that Egypt’s GDP at constant prices will increase to 8.7 trillion pounds in 2025, up from 8.4 trillion pounds in 2024, while GDP at current prices could rise to 17.5 trillion pounds from 13.8 trillion pounds in the same period. This growth is expected to be driven by the development of the Ras El-Hikma area and diminishing geopolitical pressures in the latter half of the fiscal year 2024/2025.

Additionally, the World Bank expects a gradual recovery in the Egyptian economy, with GDP growth rates projected at 3.5% in 2025 and 4.2% in 2026, compared to 2.5% in 2024.
Key growth drivers include increased investments, particularly those from the Ras El-Hikma agreement, and an improvement in private consumption, projected to rise by 4.8% in 2025 from 4.6% in the previous year.