IMF noted to arrive this week for 5th review of $8B loan program

The International Monetary Fund (IMF) could potentially begin its fifth review of Egypt’s economic reform program this week.

According to a government official who spoke to Al Asharq on condition of anonymity, the IMF’s team will arrive in Cairo to begin talks with government officials some time this week.

This fifth review comes as part of the program signed with the IMF, following the Fund’s approval in early April to disburse the fourth tranche of the loan, valued at $1.2 billion.

The review comes as part of the ongoing loan agreement between Egypt and the Fund, aimed at supporting structural reforms and economic stabilization measures.

In March 2024, Egypt succeeded in expanding the IMF loan package from $3 billion to $8 billion.

The IMF’s program for Egypt is focused on three main objectives: raising economic growth levels, increasing private sector participation, and addressing inflation.

Inflation remains a central concern for policymakers. In March, Egypt’s urban inflation rate accelerated to 13.6 percent year-on-year, up from 12.8 percent in February, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).

This marked the first inflationary uptick in six months and was driven by factors including fuel price hikes and increased fares for public transportation — including metro and railway services

Despite inflationary pressures and global uncertainty, the IMF recently upgraded its forecast for Egypt’s real GDP growth by 0.2 percentage points for both 2024 and 2025. This revision came even as the Fund downgraded its outlook for the wider Middle East and North Africa region over the same period.

Domestically, Egypt’s economy recorded quarterly growth of 4.3 percent during the second quarter of the current fiscal year — its fastest pace in more than two years. The expansion was largely driven by strong performances in the manufacturing and tourism sectors, even as Suez Canal revenues continued to decline due to heightened tensions and disruptions in the Red Sea.