Egypt’s economy ‘on track’ with lowest unemployment rate since 2011: IMF

CAIRO – 3 April 2019: Egypt’s economy is on track and continues its growth, marking the lowest unemployment rate since 2011, IMF Egypt’s Mission Chief Subir Lall said on the sidelines of the meeting of the knock door mission organized by the American Chamber in Egypt to Washington.

Lall added that foreign reserves hit good levels and public debt is declining as a result of public financial management.

He referred that economic reform policies will tighten the inflation rate, which will be a big support for the neediest citizens.

Lall clarified that applied policies included reducing budget deficit, provision of industrial lands and boosting competitiveness, as well as improving the management of State’s organizations.

IMF’s Egypt Mission Chief added that perseverance in applying the reforms is necessary to create new job opportunities and supporting middle classes.

The main purpose of the reforms is the guarantee of having stable economic environment, improving Egyptians’ life standards, and finding a climate for the private sector to create job opportunities, according to Lall.

He also pointed to the IMF’s mission, which will come to Cairo in May to carry out the final review of Egypt's implementation of its economic reform program before the final disbursement of the loan.

Lall added that the IMF committee is scheduled to review the procedures of the Egyptian economic reform program and evaluate the latest governmental procedures and their financial and economic effects in the framework of the procedures for approving the disbursement of the second installment of the third tranche.

In February, the executive board of the International Monetary Fund (IMF) agreed to give Egypt the fifth installment of its $12 billion loan ($2 billion). The review allowed Egypt to receive its fifth tranche of a $12 billion loan, raising its total endorsement to around $10 billion.

In November 2016, the Executive Board of the IMF approved a $12 billion loan as a financial assistance for Egypt to support the Egyptian economic reform program.

Upon the board's approval in November, Egypt floated its currency, losing around 50 percent of its value as part of the economic reform program, which imposed taxes, including the value-added tax (VAT), and cut energy subsidies, all with the aim of trimming the budget deficit.