São Paulo — The International Monetary Fund (IMF) said that Egypt’s inflation reached 13.9% in April on an annualized basis, but there is a downward trend in price adjustments due to developments observed in the country’s economy, the institution reported in a statement released on Tuesday (27). A delegation from the fund was in Cairo for meetings with local authorities between May 6 and 18.
The meetings are part of the fifth review of the Extended Fund Facility Agreement. After the meetings, the fund released a statement on the progress of this agreement, under which the organization provides financial to Egypt.
The IMF said Egypt has made “substantial” progress toward economic stability and highlighted the increase in private investment as a share of total investments made in the country. In the 2024/2025 fiscal year, private investment s for 60% of the total. In the 2023/2024 fiscal year, it was 38.5%.
“The current remains wide, as rising imports, reduced hydrocarbon output, and Suez Canal disruptions offset strong tourism, remittances, and non-oil exports,” the fund reported.
The financial institution said that Egypt’s efforts to modernize and streamline bureaucratic and customs procedures are beginning to show positive results. It said the Arab country needs to broaden its tax base and rationalize tax exemptions. It indicated that the role of the public sector in the economy must be reduced and a level playing field promoted for all economic agents.
The fund also said that Egypt needs to undertake “deeper” reforms to generate jobs, unlock the country’s growth potential, and increase the economy’s resilience to crises.
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Translated by Guilherme Miranda
