The International Monetary Fund logo is seen inside its headquarters - Reuters Photo
CAIRO – 21 December 2017: The International Monetary Fund (IMF) raised its forecast for Egypt’s economic growth to 5.5 percent in the next fiscal year 2018/19, up from 5.3 percent in the first review.
In a report released by the IMF Thursday morning, the fund said the executive board approved the third $2 billion tranche of Egypt’s $12 billion Extended Fund Facility.
With receiving the latest tranche, the IMF would have paid a total value of $6.08 billion to Egypt under the agreement that was reached in November 2016.
The First Deputy Managing Director David Lipton said in the statement that the results of Egypt’s economic reform program are “encouraging”.
“The economy is showing welcome signs of stabilization, with GDP growth recovering, inflation moderating, fiscal consolidation remaining on track, and international reserves reaching their highest level since 2011,” Lipton said, adding that the banking system was strong enough to buffer market shocks.
The Central Bank of Egypt’s (CBE) actions to control inflation could allow the gradual easing of interest rates, “but the CBE should remain vigilant and be prepared to tighten the monetary stance if demand pressures re-emerge,” he added.