IMF cuts Egypt's growth forecast to 4.2% amid regional conflict pressures
via Egypt Today2 min read
The International Monetary Fund IMF has reduced its growth forecasts for Egypt, citing increased economic strain from ongoing regional tensions and higher global energy prices. In its World Economic Outlook report released on Tuesday, the IMF revised Egypt鈥檚 expected growth for the current fiscal year down to 4.2 percent from 4.7 percent in its January estimates. Projections for the next fiscal year were also lowered to 4.8 percent from a previous forecast of 5.4 percent. This downgrade is attributed to the economic impact of the conflict involving Iran, which has led to increased energy and commodity prices and disruptions in key trade routes. The IMF also significantly lowered its outlook for the Middle East and Central Asia, forecasting regional growth at 1.9 percent this year, a decrease from 3.9 percent previously. Oil- and gas-exporting countries have been particularly affected, especially following disruptions related to the Strait of Hormuz since late February. Despite a weaker near-term outlook, the IMF anticipates a regional rebound next year, projecting growth of 4.6 percent. However, this recovery is contingent on a return to normal energy production levels and the resumption of shipping activity in the Strait of Hormuz, conditions that remain uncertain if the conflict persists. In recent months, Egypt鈥檚 economy has shown some resilience, with data from the Ministry of Planning and Economic Development indicating that GDP growth accelerated to 5.3 percent in the s
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President Abdel Fattah El-Sisi stated on Tuesday that Gulf security is an integral part of Egyptian national security, expressing Cairo's full solidarity with Manama amidst regional tensions. These remarks were made during his visit to Bahrain, where he met with King Hamad bin Isa Al Khalifa after a visit to Qatar. The Spokesperson for the Egyptian Presidency, Ambassador Mohamed El-Shennawy, reported that Sisi underscored Egypt鈥檚 unwavering support for Bahrain鈥檚 stability and condemned any unjustified attacks against the kingdom as a violation of international law and a dangerous regional escalation. He reiterated Egypt's rejection of attempts to compromise the security of Bahrain, Gulf Cooperation Council nations, or the broader Arab region, affirming Cairo's stance with its partners to protect their sovereignty. Sisi also praised King Hamad's leadership in maintaining regional stability and detailed Egypt's diplomatic efforts to de-escalate tensions peacefully. King Hamad welcomed El-Sisi and appreciated Egypt's continuous support for Gulf security. Both leaders emphasized the need for close coordination and joint action to address shared challenges and restore stability.
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