The International Monetary Fund (IMF) forecasts Egypt’s real Gross Domestic Product (GDP) growth at 4% for the financial year 2024/25, with inflation expected to fall below 15% by the fiscal year ending on June 30, 2024. This announcement was made by Ivanna Vladkova Hollar, head of the IMF’s Egypt Mission, during a recent press briefing.
In addition, the IMF and the Egyptian government will continue discussions regarding Egypt’s access to the Resilience and Sustainability Facility (RSF), for which the country is eligible. Egypt has been seeking a separate loan from the RSF, with Prime Minister Mostafa Madbouly indicating in March that it could amount to approximately $1.2 billion to support climate transition financing. According to Hollar, negotiations for this request will continue separately.
Egypt could already draw $820 million from its current 46-month, $8 billion loan programme with the IMF, after the fund completed its third review on Monday. This programme, initially approved in 2022, was expanded to $8 billion earlier this year in response to an economic crisis characterised by high inflation and severe foreign currency shortages.
The IMF’s optimistic forecast and ongoing financial support aim to help Egypt navigate its economic challenges and promote sustainable growth in the coming years.
