## Arab Republic of Egypt: 2017 Article IV Consultation, Second Review Under the Extended Arrangement Under the Extended Fund Facility, and Request for Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt

_IMF Staff Country Reports, January 22, 2018_

## Source details

**Canonical URL:** [Arab Republic of Egypt: 2017 Article IV Consultation, Second Review Under the Extended Arrangement Under the Extended Fund Facility, and Request for Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt](https://www.imf.org/en/publications/cr/issues/2018/01/22/arab-republic-of-egypt-2017-article-iv-consultation-second-review-under-the-extended-45568)

## Other formats

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## Bibliographic details
- Published: January 22, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484338117.002

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### Overview and key findings
- The 2017 Article IV Consultation highlights that Egypt’s reform program, supported by the Extended Fund Facility arrangement, has played a critical role in stabilizing the economy.
- By the end of 2015/16, a long-standing and ultimately unsustainable policy mix had resulted in:
  - low growth and investment,
  - elevated general government debt,
  - an overvalued exchange rate,
  - a widening current account deficit,
  - declining gross international reserves, and
  - severe shortages of foreign exchange.
- Egypt’s economic outlook is favorable, provided prudent macroeconomic policies are maintained and the scope of growth-enhancing reforms is broadened.

### Macroeconomic outlook and risks
- Favorable outlook conditional on:
  - maintaining prudent macroeconomic policies, and
  - broadening the scope of growth-enhancing reforms.
- Medium-term objective:
  - sustain economic reform momentum to raise potential output and promote inclusive growth to create jobs for Egypt’s young and growing population.

### Policy priorities and recommendations
- To sustain reform momentum, policy priorities in the medium term should aim to:
  - raise potential output, and
  - promote inclusive growth to create jobs for Egypt’s young and growing population.

### Subject coverage and keywords
- Subject: Banking; Budget planning and preparation; Energy subsidies; Expenditure; Inflation; Prices; Public debt; Public financial management (PFM); Revenue administration
- Keywords: authority; Budget planning and preparation; center; CR; economy; Egyptian pound; Energy subsidies; financial asset; Global; government procurement; Inflation; inflation expectation; ISCR; liberalized exchange rate regime; policy; state guarantee

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## Content in this bundle

- **Country Report**
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  - [Country Report (PDF)](/-/media/files/publications/cr/2018/cr1814.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2018/01/22/arab-republic-of-egypt-2017-article-iv-consultation-second-review-under-the-extended-45568_