IMF concludes 5th review mission visit for Egypt’s EFF loan programme

An IMF staff team led by Ivanna Vladkova Hollar visited Cairo from 6 to 18 May. It held productive talks with Egyptian authorities on the economic and financial policies needed to complete the review.

“These constructive discussions advanced both technical work and policy dialogue as part of the fifth EFF review,”

Hollar stated, "Egypt has made substantial progress toward macroeconomic stability. Based on stronger-than-expected performance in the first half of the year, we have revised our FY2024/2025 growth forecast upward to 3.8 percent."

She added that private investment rose significantly, from 38.5 percent of total investment in H1 FY2023/2024 to nearly 60 percent in FY2024/2025.

While inflation increased to 13.9 percent in April, it remains on a downward trend.

“The current account remains wide, as rising imports, lower hydrocarbon output, and Suez Canal disruptions have offset gains from tourism, remittances, and non-oil exports,”Hollar said.

“However, fiscal discipline—especially improved oversight of large public infrastructure projects—is helping contain demand pressures. Public investment spending remains below the ceiling set for July–December 2024.”

She welcomed recent efforts to modernize and streamline tax and customs procedures, which are already delivering positive results.

Continued domestic revenue mobilization is essential to support priority development and social spending by broadening the tax base and rationalizing exemptions, she added.

Hollar also highlighted Egypt’s progress on a medium-term debt management strategy to improve transparency and gradually lower high debt service costs.

She emphasized the need for deeper reforms to unlock growth, create quality jobs, and boost economic resilience.

“Key priorities should include reducing the public sector’s role in the economy and ensuring a level playing field. Implementing the State Ownership Policy and asset divestment programme—especially in sectors where the state has pledged to scale back—will be critical in strengthening private sector contributions to growth. At the same time, improving the business environment must continue.”

“We appreciate the warm hospitality extended by the Egyptian authorities. Virtual discussions will continue to finalize agreement on the remaining policies and reforms required to complete the fifth review,” she concluded.