IMF Staff Country Reports

This paper highlights Arab Republic of Egypt’s Ex-Post Evaluation of Exceptional Access under the 2020 Stand-By Arrangement (SBA). In early 2020, the Egyptian authorities launched a broad policy response to address the immediate and severe economic disruption caused by the coronavirus disease 2019 (COVID-19) pandemic, which threatened to reverse Egypt’s hard-won achievements in regaining macroeconomic stability. The SBA achieved its primary objective of maintaining macroeconomic stability in the context of the disruption from the COVID-19 pandemic. Policy implementation under the SBA was broadly in line with program objectives, even as exchange rate variability remained limited. While the Egyptian economy has successfully weathered the COVID-19 shock, the external and debt vulnerabilities that existed prior to the crisis remain high. The focused structural reform agenda supported by the SBA was fully executed, but decisive progress on deeper reforms is needed to foster private sector development, improve governance, and reduce the role of the state. The program design contributed to the successful completion of the SBA, yet certain aspects could have been reconsidered.