IMF gives Egypt strong marks in third program review

WASHINGTON - 12 July 2018: The International Monetary Fund (IMF) maintained a favorable outlook for Egypt's economy in its third major review of the country's loan program on Thursday, Nasdaq reported.

The IMF said Egypt reduced its overall current account deficit to 2.6 percent in 2018-2019, down from a previous projection of 4 percent.

The fund estimated that Egypt would face a financing gap of $1 billion for the year, which it could plug through either a Eurobond or its own reserves, suggesting that Egypt could tap international markets again this year.

Egypt's fuel subsidy bill is expected to account for 2.1 percent of GDP in the 2018-2019 fiscal year, the report said, up from a previous estimate of 1.2 percent on the back of higher global fuel prices.