The report, spotlighted by Egypt’s Cabinet Information and Decision Support Center, places Egypt in the third position among 18 markets in the Middle East and North Africa (MENA) in terms of investment openness, and 27th globally out of 202 economies, reflecting a significant improvement in its investment climate.
BMI attributed this outlook largely to private consumption, which is expected to remain the economy's main growth engine, reaching 87% of GDP by 2034.
Despite the slight downward revision, the projected 4.7% expansion marks a notable improvement from the 3.9% growth BMI expects for the current FY2024/2025
According to Fitch, the new U.S. administration's aggressive trade policies are driving inflation higher and delaying Federal Reserve rate cuts, creating a challenging environment for global markets.
Specifically, Egypt is expected to face particular challenges as the dollar strengthens, which will put downward pressure on currencies such as the Egyptian pound (EGP).
