BNP Paribas expected the Egyptian economy to grow by 5.5% in 2022 and by 3.9% in the next fiscal year, noting that Egypt's economic prospects declined with the outbreak of war. in Ukraine and its impact on commodity prices.
The bank clarified that the significant increase in prices would lead to a significant decrease in the purchasing power of consumers and thus would stop the main driver of economic activity.
He stated in his report that the economy is suffering from external shocks and is dependent on support from the Gulf countries and the expected package from the International Monetary Fund, and this will do the job in giving the country some time.< /p>
All of these factors linked to the crisis in Ukraine will have a particularly harsh impact on the last quarter of the current fiscal year, however, given the strong recovery in the In the first part of the year, growth should reach 5.5% in FY 2022, but economic growth will slow during the next fiscal year.
He also expected that the prices of energy, locally and globally, as well as agricultural commodities would continue to rise until the end of 2022, and consequently, the rise in prices would continue to undermine household consumption, and the difficulty of pressing government expenditures limits of the government's ability to support economic activity.
He added that even in the event of a recovery in the second half of fiscal year 2023, during which GDP growth is likely to be only 3.9% at best.
