IMF completes review mission to Egypt, highlights economic reforms,challenges

The International Monetary Fund (IMF) has concluded its discussions with Egyptian authorities as part of the fourth review under the Extended Fund Facility (EFF). The mission, led by Ivanna Vladkova Hollar, held talks in Cairo from November 6-20, addressing Egypt’s ongoing reforms and medium-term economic challenges amidst a turbulent regional environment.

The review highlighted substantial progress in implementing key policies aimed at stabilizing Egypt’s economy. The unification of the exchange rate has resolved foreign exchange backlogs and eased imports, while fiscal discipline and monetary tightening have helped curb inflation and reduce public debt vulnerabilities. However, regional conflicts and trade disruptions, particularly in the Red Sea and Gaza-Israel corridor, have significantly strained Egypt’s economy, including a sharp drop in Suez Canal revenues and increased pressure on public services due to rising refugee inflows.

The IMF emphasized the importance of sustained reforms to support private sector growth, enhance tax equity, and strengthen the social safety net to protect vulnerable populations from rising living costs. It also encouraged accelerated divestments and efforts to reduce the state’s economic footprint to foster job creation and sustainable growth.

Discussions will continue in the coming days to finalize policies and reforms needed to complete the fourth EFF review. The IMF reaffirmed its commitment to supporting Egypt’s economic resilience and sustainability amidst ongoing challenges.