Arab Republic of Egypt: Fifth 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, October 10, 2019
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- Arab Republic of Egypt: Fifth 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: October 10, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513516622.002
Macroeconomic performance (2018/19)
- Macroeconomic performance has remained strong in 2018/19, supported by continued sound policy implementation.
- The outlook remains favorable and provides an opportune juncture to further advance structural reforms to support more inclusive private-sector led growth and job creation.
Monetary policy and inflation
- Monetary policy remains anchored by the medium-term objective of bringing inflation to single digits.
- Core inflation appears to be well contained, however the central bank should remain cautious until disinflation is firmly entrenched.
Exchange rate policy
- Exchange rate flexibility remains essential to improve resilience to shocks and preserve competitiveness.
Structural reforms and governance
- The authorities have launched important reforms of competition policy, public procurement, industrial land allocation, and state-owned enterprises.
- Sustained implementation will be essential to ensure that statutory changes achieve meaningful results in the business climate.
- Sustained efforts are needed to advance reforms in competition, industrial land allocation, and governance of state-owned enterprises.
Key policy recommendations and implications
- Maintain cautious monetary policy stance until disinflation is firmly entrenched despite contained core inflation.
- Preserve exchange rate flexibility to bolster shock resilience and competitiveness.
- Prioritize sustained implementation of recently launched reforms to translate statutory changes into tangible improvements in the business climate and to promote more inclusive private-sector led growth and job creation.
IMF Staff Country Report: Arab Republic of Egypt — Fifth Review Under the Extended Arrangement Under the Extended Fund Facility.
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