The International Monetary Fund (IMF) has completed the fourth review of Egypt’s Extended Fund Facility (EFF), unlocking US$1.2 billion in support. Despite external challenges, Egypt has shown resilience, with GDP growth rebounding to 3.5% in FY2024/25 and inflation declining. Moreover, the country’s fiscal discipline has led to improved revenue, with tax collections growing significantly, and therefore contributing to a stronger primary fiscal balance. In FY2023/24, the primary fiscal balance improved by 1 percentage point, reaching 2.5% of GDP. In turn, this was achieved and reflected through tight expenditure controls that offset domestic revenue underperformance, demonstrating the country’s commitment to fiscal prudence.
Furthermore, structural reforms are progressing, including efforts to boost competition and governance, while Egypt is addressing climate change through the Resilience and Sustainability Facility (RSF); these initiatives aim to foster sustainable, inclusive growth and enhance economic resilience.
With its continued commitment to fiscal sustainability, reform implementation, and climate action, Egypt is realigning itself for long-term prosperity, ensuring a stable and growing economy in the future.