Sat. Jul 20th, 2024

The World Bank raised its forecast for Egypt’s economic growth to 4.2% during the fiscal year 2024/2025, indicating that the “Ras El Hekma” deal that Egypt concluded with the UAE will enhance investment and support growth rates.

A recent report issued by the World Bank stated that global interest rates “will remain at double the average in the period from 2000 to 2019, which will curb growth and increase debt pressures on emerging market countries borrowing in dollars.”

The report indicated that “the economies of countries that represent 80% of the world’s population and their gross product will grow at a slower pace than before the Corona pandemic until 2026.”

Indermeet Gill, Chief Economist at the World Bank Group, said: “The outlook for the world’s poorest economies is even more worrying, as these countries face severe burdens and painful levels of debt servicing, in addition to reduced trade potential and costly climate events.”

The report contains a parallel scenario that takes into account a scenario of higher interest rates for a longer period. In this scenario, continued inflation in advanced economies keeps interest rates about 40 basis points higher than the World Bank’s baseline expectations, which will lead to a decline in global growth in 2025 to 2.4%.

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