Arab Republic of Egypt: Fourth Review Under the Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt

IMF Staff Country Reports, April 6, 2019

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Arab Republic of Egypt: Fourth Review Under the Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt

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Bibliographic details

• Published: April 6, 2019
• Series: IMF Staff Country Reports

Macroeconomic improvements since program start

• The paper highlights that Egypt’s macroeconomic situation has improved markedly since the initiation of the authorities’ reform program in November 2016.
• Reforms and policies cited as contributing factors:
  • Liberalization of the foreign exchange market.
  • Prudent monetary policy.
  • Ambitious fiscal consolidation.
• Outcomes reported:
  • Growth has accelerated.
  • External and fiscal deficits have narrowed.
  • International reserves have risen.
  • Public debt, inflation, and unemployment have declined.

External environment and risks

• Recent external shifts noted:
  • The external environment has shifted in recent months, posing new policy challenges.
  • The tightening of global financial conditions and heightened global risk aversion have contributed to a pullback by investors from emerging markets.
• Outlook and conditionality:
  • The outlook remains favorable, provided policies agreed under the program are implemented.
  • The balance of risks has shifted.

Program assessment and IMF position

• The authorities’ prudent policies have been instrumental in preserving macroeconomic stability, even as the external environment has weakened notably.
• IMF staff position:
  • The IMF staff supports the authorities’ request for the completion of the fourth review under the Extended Arrangement under the Extended Fund Facility.
• Note in source text:
  • The paper discusses Argentina’s Fourth Review under the Extended Arrangement under the Extended Fund Facility (EFF). (Text preserved from source.)

Subject areas and keywords

• Subject: Banking, Energy subsidies, Expenditure, External debt, Foreign exchange, Public debt, Revenue administration
• Keywords: budget sector, core inflation, CR, economic reform program, Egypt, Energy subsidies, fuel price indexation, Fund, GDP, Global, inflation expectation, ISCR, US$

Content in this bundle

• 1. Recent Macroeconomic Developments
  • 1. Recent Macroeconomic Developments (Markdown version)
  • 1. Recent Macroeconomic Developments (PDF)