CAIRO - 31 July 2026: The International Monetary Fund (IMF) Executive Board approved a new $1.77 billion financing package for Egypt after completing the seventh review of the country's Extended Fund Facility (EFF) program and the second review under the Resilience and Sustainability Facility (RSF), citing continued economic resilience despite regional geopolitical tensions.
The latest approval allows Egypt to immediately receive $1.5 billion under the EFF and an additional $272 million through the RSF, bringing total IMF disbursements under both arrangements to approximately $7.3 billion.
The Fund said Egypt has weathered the economic impact of the conflict in the Middle East from a stronger macroeconomic position than in previous external shocks, supported by exchange rate flexibility, energy price reforms, and measures to contain public spending.
According to the IMF, Egypt's economy continued to recover, with real GDP growing 5 percent in the third quarter of FY2025/26, while overall growth during the first nine months of the fiscal year reached 5.2 percent. The Fund expects the economy to expand by 4.6 percent for the full fiscal year.
The IMF noted that headline inflation eased to 14.3 percent in June after rising in March due to exchange rate depreciation and higher energy prices. However, it expects inflationary pressures to re-emerge during the second half of 2026 before gradually returning toward the Central Bank of Egypt's target.
The Fund also highlighted Egypt's fiscal performance, saying the government exceeded its primary surplus and tax revenue targets by the end of March 2026, while gross financing needs declined by 5 percentage points of GDP during the fiscal year.
On the external sector, the IMF said record remittances, resilient tourism revenues, and improving Suez Canal receipts helped offset pressure from higher energy import costs, keeping the current account deficit at an estimated 4.5 percent of GDP. Gross international reserves remained above the Fund's reserve adequacy benchmark.
Despite the positive assessment, the IMF stressed that structural reforms should be accelerated, particularly efforts to reduce the state's role in the economy, implement the State Ownership Policy, and advance the government's privatization program.
It noted that Egypt recently finalized the Gabal El Zeit transaction alongside sales of stakes in publicly listed companies, bringing total divestment proceeds to around $520 million.
Looking ahead, the IMF projected growth to moderate to 4.4 percent in FY2026/27 amid persistent regional uncertainty, while warning that geopolitical tensions, elevated public debt, and delays in structural reforms remain the main risks to the outlook.
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