Arab Republic of Egypt: Third Review Under the Extended Arrangement Under the Extended Fund Facility, and Requests for a Waiver of Nonobservance of a Performance Criterion and for Modification of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt
July 12, 2018
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Macroeconomic conditions have continued to improve during 2017/18, with external and fiscal deficits narrowing, inflation and unemployment declining, and growth accelerating. The near-term growth outlook is favorable, supported by the recovery in tourism and rising natural gas production, while the current account deficit has fallen below 3 percent of GDP and gross international reserves stood at 7 months of prospective imports at end-May. Inflation is expected to temporarily rise in 2018/19, reflecting increases in fuel and electricity prices, but the monetary policy stance appears appropriate to contain second-round effects. The government debt ratio is projected to decline markedly in response to fiscal consolidation and high nominal GDP growth.
Subject: Energy subsidies, Expenditure, External debt, Fiscal stance, Fuel prices, Oil prices, Prices
Keywords: confidence gain, CR, credit growth, Energy subsidies, energy subsidy reform, Fuel prices, Global, government procurement law, indexation mechanism, inflation expectation, ISCR, Oil prices, portfolio inflow, reform gain
Pages:
80
Volume:
2018
DOI:
Issue:
213
Series:
Country Report No. 2018/213
Stock No:
1EGYEA2018003
ISBN:
9781484366998
ISSN:
1934-7685
