BMI Research, a Fitch Solutions company, expects the construction sector in Egypt to grow by 7.5% year on year (YoY) in the current fiscal year (FY) 2023/2024, according to the firm’s Egypt’s Infrastructure Report.

It also projects a 7.9% YoY climb in Egypt’s construction sector in the upcoming FY 2024/2025, to perform better as compared to the sector’s growth rates in other countries in the Middle East and North Africa (MENA) until 2033.

Moreover, BMI anticipates that public infrastructure spending to stay at robust levels in the foreseeable future, with the possibility of debt load on prolonged periods of large-scale infrastructure investments to weigh on spending in the long term.

In the short term, inflationary pressures are expected to curb growth in both residential and non-residential construction sectors. These pressures are anticipated to erode household purchasing power, while elevated interest rates could restrict access to financing.

Looking ahead, Fitch foresees the government's privatization initiative as a key driver in expanding private sector involvement within the country's infrastructure sector.


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