An IMF delegation to visit Egypt next May to conduct the third periodic review of Egypt’s economic reform programme in preparation for providing the country the fourth tranche of a $12 billion loan, which is estimated at $2 billion.
Egypt’s economy continues to perform strongly, and reforms that have already been implemented are beginning to pay off in terms of macroeconomic stabilization and the return of confidence.
On the other hand, Egypt’s growth picked up during fiscal year 2016/17, with GDP rising by 4.2 percent compared to the projected 3.5 percent. Meanwhile, the current account deficit narrowed in dollar terms, supported by the increase in non-oil exports and tourism receipts while non-oil imports declined. Reflecting increased investor confidence, portfolio investments into Egypt reached $16 billion this year and foreign direct investment rose by 13 percent.
while, the budget difict would decline to 9.2 percent during the current year compared to 10.9 percent a year earlier according to IMF expectations.
The IMF also foresees that other indicators will improve such as the decline in the unemployment rate to 11.2% by the end of this year, compared with 12.1% last year, and an increase in tourism revenues to $ 6 billion, up $ 1.6 billion from last year, and increased foreign direct investment flows to $ 8.4 billion, compared to 7.7 billion dollars last year.
On November 11, 2016, the Executive Board of the International Monetary Fund (IMF) approved a three-year extended arrangement under the Extended Fund Facility (EFF) for Egypt for an amount equivalent to SDR 8.597 billion (about US$12 billion, or 422 percent of quota) to support the authorities’ economic reform program.