IMF Staff Completes Review Mission to Egypt

IMF News, May 27, 2025

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An IMF staff team led by Ms. Vladkova Hollar visited Cairo from May 6 to May 18 to hold discussions with the Egyptian authorities.
Discussions focused on economic and financial policies that could underpin the completion of the Fifth Review under the Extended Fund Facility (EFF) arrangement.
Discussions will continue virtually to finalize agreement on remaining policies and reforms that could support completion of the fifth review.

Growth forecast for FY24/25 upgraded to 3.8 percent, reflecting a stronger-than-expected outturn in the first half of the year.
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.
Inflation rose slightly to 13.9 percent in April but remains on a downward trend.
The current account remains wide due to rising imports, reduced hydrocarbon output, and Suez Canal disruptions offsetting strong tourism, remittances, and non-oil exports.
Total public investment spending remained below the established ceiling for July – December 2024.

Good progress on the assessment of economic performance and implementation of policy commitments under the EFF arrangement.
Recent efforts to modernize and streamline tax and customs procedures to increase efficiency and build confidence are welcomed and starting to yield positive results.
Development of a medium-term debt management strategy is underway, aiming to improve transparency and gradually reduce the large debt service cost in the budget.
Greater fiscal prudence—including better oversight and control over large public sector infrastructure projects—is helping to contain demand pressures.

Continue domestic revenue mobilization mainly by widening the tax base and streamlining tax exemptions to support government spending on priority development and social needs.
Decisively reduce the role of the public sector in the economy and level the playing field for all economic agents.
Implement the State Ownership Policy and the asset divestment program in sectors where the state has committed to reduce its footprint to strengthen private sector contribution to growth.
Continue efforts to improve the business environment to unlock growth potential, create high-quality jobs, and sustainably reduce vulnerabilities and increase resilience to shocks.

Press Release No. 25/163 — May 27, 2025. International Monetary Fund.