Afreximbank: Egypt's economy to grow by 3.8% in 2025

Egypt's economy to grow by 3.8% in 2025

 Afreximbank expects the Egyptian economy to grow by 3.8% in 2025

The African Trade Report 2025, issued by the African Export-Import Bank (Afreximbank), forecasts the Egyptian economy to grow by 3.8% in 2025.

The report, issued during the bank's 32nd Annual Meetings held in Abuja, titled "African Trade in the Changing Global Financial Architecture," noted that economic growth in Africa is expected to gain slight momentum to reach 4% in 2025, up from 3.2% in 2024, and strengthen to 4.2% in 2026, despite the growing challenges and uncertainty characterizing the global economic environment.

It noted that key factors supporting Africa's growth prospects include robust growth forecasts for several large and medium-sized economies, such as Egypt (3.8%), Algeria (3.5%), Ethiopia (6.1%), Morocco (3.9%), Tanzania (6.1%), and Uganda (6%).

The report explained that several other factors support the expected expansion in Africa's output, including increased global demand for African exports, the continued easing of inflationary pressures that boost private consumption, monetary policy that improves access to credit and investment, and the implementation of structural reforms to enhance the diversification of African economies and sources of growth.

The report indicated downside risks, including escalating geopolitical tensions, trade wars, and increased policy uncertainty. It noted that the economic slowdown in China and the United States, the world's two largest economies, is negatively impacting global financial conditions and weakening demand for African commodities, negatively impacting the region's output.

However, he stressed that the continued implementation of the African Continental Free Trade Agreement contributes to mitigating the impact of shocks, as increased integration, trade, and intra-African investment boost economic activity across the continent.