IMF highlights Egypt’s fiscal resilience, reform progress

The International Monetary Fund (IMF) has praised the resilience of Egypt’s economy and the progress achieved under its fiscal reform programme, according to the Cabinet’s Media Center.

The Fund attributed Egypt’s performance to the authorities’ swift and decisive policy response, noting that the economic impact of the war in the Middle East has remained relatively contained.

Key measures included adjustments to fuel and electricity prices, efforts to reduce energy consumption across government entities, and higher social spending to protect the most vulnerable groups from the effects of the crisis.

Egypt also recorded a strong fiscal performance. By the end of March 2026, the government had exceeded its targets for both the primary surplus and tax revenues, supported by stronger domestic revenue collection and the containment of total spending within the approved budget limits.

The primary surplus is projected to increase from 4.8% of GDP in fiscal year 2025/2026 to 5% in fiscal year 2026/2027.

Meanwhile, reforms aimed at expanding the tax base and strengthening tax administration are expected to deliver further gains, with the tax-to-GDP ratio projected to rise by 1.2 percentage points this year.