Cairo – July 31, 2024: Following the competition of its 3rd review of Egypt’s extended fund facility (EFF), the International Monetary Fund (IMF) revised its forecast for Egypt’s growth rate, projecting a 4 percent for FY2024/2025 with inflation to fall below 15 percent.
In a report released last week, the IMF had predicted a 2.7 percent growth in FY2024/2025 and a slightly improved 4.1 percent in FY2025/2026.
The latest forecast comes with expectations of a significant reduction in inflation, anticipated to drop below 15 percent, explained Ivanna Vladkova Hollar, the IMF's mission chief for Egypt, during a recent press briefing, highlighting the country's strides towards economic stability and recovery.
Hollar also disclosed ongoing discussions between the IMF and Egyptian authorities regarding potential access to climate transition financing from the IMF's Resilience and Sustainability Facility (RSF). These talks are set to continue into fall, underscoring Egypt's commitment to advancing sustainable development initiatives amid broader economic reforms.
Earlier in March, Prime Minister Mostafa Madbouly announced Egypt's intention to secure approximately $1.2 billion from the RSF, a move aimed at bolstering the nation's resilience to climate-related challenges while promoting sustainable growth practices.
Looking ahead, Hollar emphasized the importance of enhancing tax revenues as a critical part of the reform agenda.
"Egypt needs tax resources to be able to spend on priority needs, that is a priority reform that we will be discussing at the time of the fourth review," she said.
Under the current IMF EFF program, which spans 46 months and includes biannual reviews until autumn 2026, each disbursement is earmarked at approximately $1.3 billion.
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