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IMF not considering expansion of Egypt's program, revises growth outlook downwards
via Egypt Today2 hours ago2 min read
Kristalina Georgieva, Managing Director of the International Monetary Fund IMF, stated on Wednesday that the Fund is not currently considering an increase to Egypt’s program, noting the Egyptian government's strong management of economic policies. The IMF has revised its outlook for Egypt’s economic growth, lowering it by 0.5 percentage points to 4.2 percent for the current fiscal year, down from 4.7 percent. The projection for the next fiscal year was also reduced by 0.6 percentage points to 4.8 percent, while the forecast for the average inflation rate for the current fiscal year was raised to 13.2 percent from 12.4 percent. Georgieva indicated that at least 12 countries, including several in Sub-Saharan Africa, are expected to seek new borrowing arrangements due to rising energy costs and supply chain disruptions linked to the conflict in the Middle East. She cautioned against broad, untargeted measures like widespread energy subsidies, warning they could prolong high prices. Separately, the IMF lowered its growth forecast for emerging and developing economies in 2026 to 3.9 percent from 4.2 percent, citing higher energy and food prices and geopolitical uncertainty. IMF spokesperson Julie Kozack confirmed the Fund's commitment to supporting Egypt and assessing regional developments. IMF staff are collaborating with Egyptian authorities to complete the seventh program review by summer. The IMF has scheduled June and September for the final two reviews of Egypt’s program, wh
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Original source
This summary was AI-generated from a story originally published by Egypt Today.
