Egypt's real GDP climbs 2.4% by the end of 3Q FY23/24 amid global headwinds

Posted on October 3, 2024   |  

Egypt's GDP grew by 2.4% during the first nine months of FY2023/2024 (July 2023 to March 2024), showing resilience despite global challenges.

The growth was supported by financing in key sectors, new financial products, and household deposits as a steady funding source.

GDP growth slowed from 4.1% in the same period last year, mainly due to rising global tensions, high inflation, and higher interest rates.

By the end of FY2023/2024, banking sector assets comprised 116.9% of nominal GDP and 92.3% of total financial system assets.

In March 2024, the Egyptian pound lost over 60% of its value, and the Central Bank raised interest rates by 6%, totaling 19% in hikes since March 2022.

Fiscal policies focus on financial discipline, while monetary policy raises interest rates to curb inflation, with a reserve ratio of 18% and caps on loan installments.

The non-banking financial sector represents 9.8% of nominal GDP and 7.7% of total financial system assets, showing solid growth in FY2023 and early 2024.

Egypt’s capital market grew strongly through early 2024, with improved performance in non-banking financial activities.