IMF praises Egypt's economic resilience and reform progress

The IMF attributed Egypt's performance to the authorities' prompt and decisive policy responses, noting that the economic impact of the Middle East conflict has been relatively contained. Measures included adjustments to fuel and electricity prices, efforts to reduce energy consumption in government entities, and increased social spending to protect vulnerable groups. Egypt also demonstrated strong fiscal performance, exceeding primary surplus and tax revenue targets by the end of March 2026, supported by improved domestic revenue collection and controlled spending.

The primary surplus is projected to rise from 4.8% of GDP in fiscal year 2025/2026 to 5% in fiscal year 2026/2027. Reforms to broaden the tax base and strengthen tax administration are expected to further increase the tax-to-GDP ratio by 1.2 percentage points this year.