The IMF Executive Board completed the fourth review of Egypt's Extended Fund Arrangement, allowing the authorities access to approximately USD1.3 billion, or the equivalent of Standard Drawing Rights (SDR)1 billion. According to an IMF statement, the Egyptian authorities have maintained macroeconomic stability amid a challenging regional environment, but progress on the structural reform agenda has been uneven.
Accordingly, more decisive reform implementation will ensure sustainable and strong growth in Egypt. Priorities include boosting domestic revenues, improving the business environment, accelerating disinvestment, and enhancing governance and transparency. The Executive Board also approved the Egyptian authorities' request for arrangements under the Resilience and Sustainability Program.
Continued efforts to reduce inflation to 10 percent
With the continued improvement in economic indicators, particularly the increase in US dollar liquidity, the Egyptian government aims to reduce inflation to 10 percent by 2026. The inflation rate in Egypt decreased to 10 percent in February from 24 percent in January 2025. In his speech at the weekly Cabinet conference, Prime Minister Mostafa Madbouly said there has been a noticeable improvement in all economic indicators.
Madbouly said: "Egypt is moving in the right direction, and we have a vision to address the various challenges. The government will continue to provide social support to citizens, and 400,000 housing units will be announced to meet the needs of various segments of society immediately after Eid al-Fitr."
Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, also said that despite the Egyptian economy's significant challenges, we are witnessing a noticeable improvement in several sectors, particularly regarding economic growth in the first quarter of the fiscal year. This improvement was driven by the non-petroleum manufacturing sector, tourism, transportation, and storage. Al-Mashat had predicted that the Egyptian economy would achieve four percent growth during the current fiscal year, she said.
During a House of Representatives' Economic Committee meeting, Al-Mashat explained that the ministry is working to implement the National Economic Development Plan. This plan includes a foreign direct investment strategy, an industrial development strategy, human development, and entrepreneurship, all of which drive economic growth. They also help establish unified targets reflecting Egypt's Vision 2030 and the Egyptian government's work programme.
Al-Mashat also addressed the government's efforts to govern public investments to enhance macroeconomic stability, achieve financial discipline, and maintain public debt sustainability and high inflation rates. This was reflected in the increase in private sector investments in the first quarter of the current fiscal year.
5.8 percent growth in total investments
The Minister of Planning, Economic Development, and International Cooperation stated that the total volume of investments implemented in the 2023/2024 fiscal year plan amounted to approximately EGP1,626 billion (USD32.134 billion). This means a growth rate of 5.8 percent compared to the amount implemented in the previous fiscal year and an implementation rate of approximately 98.5 percent of the plan's target of approximately EGP1,650 billion.
The Minister added that the plan's implementation maintained the state's main development directions in the human and social development sectors, such as school education, university education, scientific research, and health services, accounting for approximately EGP107.9 billion.
She also confirmed the state's commitment to human development sectors that support the development of Egyptian citizens. She said that local development investments implemented during the year amounted to approximately EGP23.2 billion, representing 7.5 percent of the total government investments implemented during the year, exceeding the plan's target of 17.2 percent.
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