Egypt's PM and IMF Chief discuss economic reform progress

CAIRO - 2 November 2024: Egyptian Prime Minister Mostafa Madbouly highlighted the strength of Egypt’s partnership with the International Monetary Fund (IMF) and the Fund's ongoing support for Egypt’s economic reform plans during a press conference with IMF Managing Director Kristalina Georgieva in Cairo.

 

Madbouly announced that the IMF would begin its fourth review of Egypt’s loan program on Tuesday. This process could unlock over $1.2 billion in financing, providing essential support as Egypt continues its economic reform journey. This review is part of the 46-month IMF loan program, initially approved in 2022 and later expanded to $8 billion to address economic challenges. The IMF team will work closely with the Central Bank of Egypt and relevant ministries, aiming to help drive Egypt’s path toward macroeconomic stability and sustainable growth through targeted structural reforms.

 

Georgieva commended the resilience displayed by Egypt’s government and people, emphasizing the IMF’s commitment to Egypt’s economic stability and development. She pointed to Egypt’s progress in implementing a flexible exchange rate system—a step the IMF views as pivotal for enhancing economic resilience. This commitment was underscored earlier this year when the IMF expanded the loan program from $3 billion to $8 billion, recognizing Egypt’s proactive measures and the complexities of the broader economic landscape.

 

Georgieva also highlighted Egypt’s strides in strengthening the private sector, which she described as essential for job creation and economic growth, especially for Egypt’s young and growing workforce. Additionally, she noted Egypt’s progress in reshaping its social protection framework by gradually reducing subsidies and directing financial support to the most vulnerable populations. According to the IMF’s projections, Egypt’s economic growth rate is expected to rise to 4.2% in the 2024-2025 fiscal year, up from 2.4% last year. Inflation, which stood at 37% last year, is projected to ease to around 25-26%, offering much-needed relief to low- and middle-income families.

 

Outlining strategic goals, Georgieva identified three key priorities for Egypt: sustaining macroeconomic stability, fostering private sector expansion to meet annual job creation needs, and advancing green economy objectives. These priorities are set to guide discussions in the coming week, with the IMF ready to support Egypt in achieving its economic targets. Georgieva stressed the importance of adaptability and proactive planning as global economic conditions evolve at an unprecedented pace.

 

Madbouly closed the conference by reaffirming Egypt’s commitment to its long-standing partnership with the IMF, underscoring the importance of resilience and quick adaptation as countries worldwide navigate an increasingly volatile economic environment.