Egypt Daily News – The International Monetary Fund (IMF) has stated that Egypt is making notable progress toward macroeconomic stability. However, it emphasized the need for further simplification of the country’s tax and customs procedures, as well as broadening the tax base to support continued economic growth and stability.
An IMF delegation visited Egypt from May 6 to May 18 as part of the fifth review under the country’s $8 billion Extended Fund Facility agreement, which was signed in March 2024.
In a statement following the visit, Ivanna Vladkova Hollar, head of the IMF mission to Egypt, said, “Egypt has made tangible progress towards macroeconomic stabilization.” She added that growth is expected to continue improving, with the IMF raising its forecast for the 2024–2025 fiscal year to 3.8%, driven by stronger-than-expected results in the first half of the year.
A recent Reuters poll of 17 analysts also projected a 3.8% growth rate for the fiscal year beginning in July 2024. Meanwhile, the Central Bank of Egypt reported a 4.3% economic growth rate from October to December 2024 and expects 5% growth from January to March 2025.
The IMF noted in its statement that improved oversight of large-scale public infrastructure projects is helping to contain demand pressures. It also confirmed that Egyptian authorities are working to modernize and streamline tax and customs procedures. These reforms are starting to yield positive outcomes, according to the Fund.
In March 2024, the IMF approved Egypt’s fourth program review, allowing the disbursement of a $1.2 billion tranche. The Egyptian government expects to receive another $1.3 billion upon completion of the fifth review, with disbursement anticipated in June 2025, though no exact date has been announced.
Earlier this year, the IMF approved the fourth tranche of Egypt’s loan package as part of efforts to stabilize the economy, boost foreign reserves, finance fiscal gaps, and support efforts to reduce inflation and promote growth. The loan is part of a broader program aimed at addressing Egypt’s prolonged foreign currency crisis, which began in early 2022. In March 2024, Egypt successfully expanded the IMF agreement from $3 billion to $8 billion.
A previous statement from the Egyptian cabinet’s spokesperson, Mohamed El-Homsany, noted that Prime Minister Mostafa Madbouly met with Mohamed Maait, Egypt’s representative at the IMF, to discuss updates on financial cooperation and developments related to the fifth review.
During this meeting, the IMF also approved Egypt’s participation in the Resilience and Sustainability Facility, granting Egypt access to $1.3 billion in long-term concessional funding. This initiative aims to support structural reforms and enhance the country’s resilience to global economic shocks.
The IMF continues to urge Egypt to decisively reduce the role of the public sector in the economy to unlock growth potential, create quality jobs, reduce vulnerabilities, and boost the economy’s resilience. Vladkova Hollar emphasized that implementing the State Ownership Policy and the divestment plan in sectors where the state has pledged to reduce its presence is vital for strengthening private sector involvement in Egypt’s economic development.
She also stressed the importance of improving the business environment and providing equal opportunities for all economic players. Discussions between the IMF and Egyptian authorities will continue virtually to finalize the remaining policy and reform measures necessary to complete the fifth review.
The IMF welcomed recent government efforts to modernize tax and customs systems, saying these steps have begun delivering positive results. However, it underlined the need to continue mobilizing domestic revenues—especially by expanding the tax base and streamlining exemptions—to support essential development and social spending.
Additionally, the IMF praised Egypt’s efforts to establish a medium-term debt management strategy aimed at improving transparency and gradually reducing the high cost of debt servicing within the national budget.
