Street market in Cairo/Bloomberg
The International Monetary Fund (IMF) said Egypt was on track to achieve its three-year fiscal consolidation objective of 5.5 per cent of gross domestic product (GDP) in the primary balance.
Sunday 19, May 2019
(Bloomberg) --The IMF reached an agreement with Egypt in its final review of the country’s economic reform programme, unlocking $2 billion in aid.
The IMF stated that the country is making progress implementing measures to increase productivity, remove barriers to investment and trade as well as improve governance and reduce the role of the state in the economy.
“Prudent monetary and fiscal policies as well as a flexible exchange rate have underpinned macroeconomic stabilisation and strengthened Egypt’s resilience to external shocks,” the IMF said.
Additionally, the IMF applauded the government’s focus on structural reforms as it needs to be deepened to facilitate inclusive growth and job creation for all.
Egypt secured the loan in 2016 after halving the value of the pound relative to the dollar and cutting subsidies as part of a sweeping programme to overhaul the economy.
The IMF loan helped restore investor confidence during the upheaval, which sent inflation and discontent soaring among the country’s millions of poor.
The IMF said the central bank’s aim of reducing inflation to single digits in the medium term would help to further strengthen macroeconomic stability, reduce interest rates and attract investment.