lastests post

Imminent danger of recession… Why did the World Bank lower its forecast for economic growth?

02:13 PM

Wednesday, January 11, 2023

I wrote – Shaima Hefzy:

The World Bank lowered its forecast for the growth of the Egyptian economy during the current fiscal year, in line with the expectations of the International Monetary Fund, which lowered its forecasts for Egypt 3 times.

And Egypt is not the only country that the World Bank expects to be affected by the rise in inflation, although the rise in prices will lead to the erosion of real wages in Egypt.

At the level of the global economy, the World Bank expected a “dangerous approach to a situation of economic recession,” which, if it occurs, will be a recession for the second time in a decade, and it will be an event that will be repeated for the first time since 1930.

“I am very concerned about the risk of a continued slowdown,” said World Bank President David Malpass. “Our estimates are that global growth between 2020 and 2024 will be less than 2%. This growth is the weakest in five years since 1960.”

The World Bank expected, in a report issued on Tuesday, that the Egyptian economy would grow by 4.5% during the current fiscal year, instead of previous expectations of a growth of 4.8%.

The International Monetary Fund (IMF) had lowered its forecasts for the growth of the Egyptian economy during the current fiscal year, again, expecting, in a report issued on Tuesday, that it would record a growth of 4%, compared to an expected growth of 4.4% in a previous report last October.

This is the third reduction in the expected growth of Egypt’s economy during the fiscal year that is scheduled to end next June, as the Fund had previously expected the economy to grow by 5%, then lowered its forecast to 4.8% last July.

Related Articles

Back to top button