IMF expects Egypt's economy to grow by 5.9% in 2025/2026

BY

Egypt Today staff

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Wed, 11 Jan 2023 - 02:01 GMT

BY

Egypt Today staff

Wed, 11 Jan 2023 - 02:01 GMT

IMF - file

IMF - file

CAIRO - 11 January 2023: The International Monetary Fund expected Egypt's economy will grow by 5.9% in 2025/2026, adding that Egypt’s budget revenues in the current fiscal year are expected to reach about 1.6 trillion pounds, increasing to 1.9 trillion pounds in the next fiscal year, to reach 2.2 trillion pounds in the next fiscal year 2024/2025.

In a statement released on Tuesday, the IMF expected Egypt's economy will grow by 4% in the 2022/2023 current fiscal year (FY), 5.3% in the fiscal year 2023/2024.

The IMF stated the loan agreement reached with Egypt aims to stimulate economic growth led by the private sector, stabilize the foreign exchange market and maintain price stability to absorb external shocks.

In December 2022, Egypt has reached a 46-month staff-level agreement with the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) to receive a loan worth about $ 3 billion.

The IMF projected the annual core inflation rate to decrease by 7% by the fiscal year 2024/2025 and the State budget will achieve 2.1% surplus of GDP.

The head of the International Monetary Fund's mission in Egypt, "Ivana Vladkova Hollar," affirmed that the fund stands ready to support economic reforms and efforts to curb inflation in Egypt.

She said that the fund's program - which was approved in December - supports the reform program undertaken by the Egyptian authorities, which aims to address weaknesses and promote sustainable and inclusive growth and job creation.
 
During a press conference at the fund's headquarters in Washington, DC, Vladkova Hollar confirmed that the review program for Egypt is based on three main pillars:
 
First, the exchange rate and monetary policies will focus on a permanent shift to a flexible exchange rate regime that would help absorb external shocks. and rebuild reserves while gradually lowering inflation.
 
She explained that the second pillar aims at continuous fiscal discipline and fiscal structural policies in order to preserve market confidence and ensure the downward path of the debt-to-GDP ratio, while strengthening the budget preparation process, increasing transparency, and improving budget composition to allow expansion of social spending.
 
While in the third pillar, the structural reform agenda will help boost private sector investment and secure strong and inclusive growth in the medium term, including by reducing the role of the state in generating economic activity, creating a fair competitive environment between state-owned and private companies, and removing barriers to trade.

 

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