For FY2024/2025 however, the fund now expects Egypt’s economy to expand by 4 percent, a slight upward revision of 0.2 percent from earlier projections, according to Petya Koeva Brooks, deputy director of the IMF’s Research Department.
The improved outlook for 2024-25 reflects "better-than-expected data over the past months," driven by strong performances in non-oil manufacturing, tourism and telecommunications, Brooks told Ahram Online in response to questions about the IMF’s revised projections.
“These sectors have outpaced expectations, lifting our growth projection for the current year,” she added.
Still, the outlook dims slightly for the following fiscal year. “The downward revision in 2026 is mainly due to the delayed implementation of the structural reform agenda,” Brooks added.
The IMF has consistently emphasised that while Egypt has made strides in economic stabilisation, sustaining long-term growth depends on accelerating structural reforms, enhancing private sector participation, and maintaining fiscal discipline.
The updated forecasts come as Egypt continues to navigate global economic headwinds and domestic pressures, including inflation, currency volatility, and investor confidence concerns, according to Brooks.
The IMF has recently announced the delay in the completion of the fifth review of the ongoing $8 billion loan programme to December amid the delay in the implementation of the divestment plan. The fifth review completion was primarily scheduled for June 2025
The Fund will initiate the talks on the fifth and sixth review in September, while completion is expected to be completed in December.
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