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This fifth review comes as part of the program signed with the IMF, following the Fund’s approval in early April to disburse the fourth tranche of the loan, valued at $1.2 billion.
The IMF noted that “economic activity is expected to pick up but remain modest” in FY2025/2026, reflecting the complex challenges Egypt continues to face.
The revised estimates suggest Egypt’s economy will expand by 2.4 percent this year, followed by growth of 3.8 percent in 2025 and 4.3 percent in 2026.
The IMF in March stated that Egypt, which is connected to the lender via an $8 billion Extended Fund Facility (EFF) loan program, remains committed to lifting fuel subsidies by the end of 2025.
This funding is part of a larger effort by Egypt to implement its climate strategy, which has been developed in collaboration with multiple ministries and government entities.
This follows a statement from the IMF's Executive Board, which acknowledged Egypt’s progress in stabilizing its economy despite ongoing external challenges.
Pending approval, the country is expected to receive the fourth tranche of its loan agreement, valued at $1.2 billion.
The IMF's Executive Board is expected to consider both the fourth review of Egypt’s loan program and the discussions around the RSF in the coming weeks.
Similarly, the projection for FY2025/2026 has been revised down to 4.1 percent, compared to the previous estimate of 5.1 percent.
“The Egyptian authorities have continued to implement key policies to preserve macroeconomic stability, despite ongoing regional tensions that are causing a sharp decline in Suez Canal receipts.”
Madbouly disclosed the government's plans to offer 11 companies for sale during the upcoming year, prominently featuring the military-affiliated Wataniya, Safi, Silo Foods, and ChillOut
He reaffirmed Egypt’s commitment to its partnership with METAC, focusing on strengthening the resilience of economies in the MENA region against shared challenges.
Madbouly remarked on the historical perception within Egypt that a fixed exchange rate symbolized a state's robustness and endurance and that a flexible exchange rate system should be avoided
According to the IMF, Egypt has implemented key reforms to stabilize its economy despite these pressures.
The International Monetary Fund (IMF) is keen on maintaining the dynamic movement in Egypt as a pillar of stability despite being surrounded by many troubles, Kristalina Georgieva, IMF Managing Director said Monday.
She anticipates that inflation rates could fall to 17 percent in the coming period, a goal backed by the IMF’s support of Egypt’s ongoing economic reforms.
Sisi emphasized that the state prioritizes alleviating the pressures and burdens on citizens
“The program is moving in the right direction and is gradually achieving its targets, both in terms of growth recovery and gradual decline in inflation, and a normal functioning of the foreign exchange market,” Azour said during a briefing in Dubai.
New data is expected to reveal the effects of economic reforms on household spending following two years of currency devaluation and rising prices.
He also thanked Prime Minister Mostafa Madbouly and the Egyptian government for their support during the nomination and voting process.
