Egypt's Economic Outlook: Stability on the Horizon?

Egypt's real GDP growth is projected at 4% for FY 2024/25, while inflation is expected to drop below 15%. The IMF and Egypt will continue negotiations for access to the Resilience and Sustainability Facility (RSF) in the fall, as the country aims to secure an additional $1.2 billion loan.

Egypt's real GDP growth is projected to reach 4% for the fiscal year 2024/25, with inflation anticipated to fall below 15%, according to IMF Egypt Mission Chief Ivanna Vladkova Hollar. She discussed these forecasts with journalists on Tuesday.

The International Monetary Fund (IMF) and the Egyptian government plan to continue their negotiations this fall concerning Egypt's access to the Resilience and Sustainability Facility (RSF), for which the country is eligible. Egypt has been actively seeking a separate loan, following Prime Minister Mostafa Madbouly's March announcement estimating a $1.2 billion request from the RSF aimed at climate transition financing.

Hollar noted that discussions regarding this additional loan of $1.2 billion are slated to continue separately. Meanwhile, Egypt can already draw $820 million from its latest 46-month, $8 billion IMF loan program, following the fund's third review completion announced on Monday. This program, initially approved in 2022, was expanded to $8 billion this year in response to an economic crisis characterized by high inflation and severe foreign currency shortages.

(With inputs from agencies.)