IMF Egypt: EFF Review Progress & Ongoing Talks
- The International Monetary Fund (IMF) has recognized Egypt's "substantial progress toward macroeconomic stability," upgrading its growth forecast for fiscal year 2024/25 to 3.8%.
- Vladkova Hollar,who led the IMF mission,noted that Egypt's private investment share has risen significantly,from 38.5% in the first half of fiscal year 2023-24 to nearly 60% in the...
- While inflation edged up to 13.9% in April, the IMF expects it to continue its downward trend.The current account remains wide due to increased imports, lower hydrocarbon output,...
the IMF applauds Egypt’s strides in macroeconomic stability,revising the growth forecast for FY24/25 upwards to 3.8%. This positive assessment comes after discussions on the extended Fund facility (EFF) arrangement, highlighting notable progress. The IMF emphasizes accelerating economic reform to create a level playing field and boost private sector growth. Specifically, private investment share has risen dramatically. The ongoing focus is on modernizing tax and customs procedures. While inflation shows signs of a downward trend, Egypt faces current account challenges from increased imports. The collaboration between the IMF and Egyptian authorities for the fifth review focuses on key areas for strengthening economic growth for Egypt. Further talks are set to finalize an agreement, with efforts to reduce the public sector’s role. News Directory 3 delivers up-to-date coverage. Discover what’s next for Egypt’s economic trajectory.
IMF Cites Egypt’s Progress on Economic Reform, Growth Forecast Up
Updated May 28, 2025
The International Monetary Fund (IMF) has recognized Egypt’s “substantial progress toward macroeconomic stability,” upgrading its growth forecast for fiscal year 2024/25 to 3.8%. This assessment follows an IMF team visit to Cairo in May for discussions on the country’s Extended Fund Facility (EFF) arrangement. Further talks are planned to finalize an agreement on policies needed for the fifth review’s completion.
Vladkova Hollar,who led the IMF mission,noted that Egypt’s private investment share has risen significantly,from 38.5% in the first half of fiscal year 2023-24 to nearly 60% in the same period of fiscal year 2024-25. Hollar issued a statement emphasizing the importance of accelerating economic reform to reduce the state’s role, create a level playing field, and improve the business environment.
While inflation edged up to 13.9% in April, the IMF expects it to continue its downward trend.The current account remains wide due to increased imports, lower hydrocarbon output, and Suez Canal disruptions, which offset gains from tourism, remittances, and non-oil exports. The IMF also commended Egypt’s efforts to modernize tax and customs procedures, which are beginning to show positive results.
Hollar stressed the need for continued structural changes to unlock Egypt’s growth potential, create jobs, and enhance the economy’s resilience. Key priorities include reducing the public sector’s role and ensuring fair competition.The implementation of the State Ownership Policy and asset divestment program will be crucial in strengthening the private sector’s contribution to economic growth in Egypt.
“Egypt has made substantial progress toward macroeconomic stability. Growth is expected to continue strengthening,and we upgraded our forecast for FY24/25 to 3.8 percent… Simultaneously occurring, the private investment share in total investment rose from 38.5 percent in H1 FY23-24 to almost 60 percent over the same period in FY24-25.”
What’s next
The IMF and Egyptian authorities will continue virtual discussions to finalize an agreement on policies and reforms that could support the completion of the fifth review,focusing on deepening economic reform and fostering private sector growth.