Egypt's Strides Toward Economic Stability: IMF's Positive Outlook
The International Monetary Fund (IMF) acknowledges Egypt's progress in achieving macroeconomic stability with the need to expand its tax base. During its fifth review, the IMF revised Egypt's growth forecast to 3.8% for FY24/25. Improvements in tax and customs procedures are instrumental in these positive developments.
On Tuesday, the International Monetary Fund (IMF) highlighted Egypt's advances toward macroeconomic stability while emphasizing the country's need to broaden its tax base. An IMF mission visited Egypt in May for its fifth review of an $8 billion financial support agreement established in March 2024.
IMF Mission Chief for Egypt, Vladkova Hollar, said that the country's growth outlook has improved, projecting a 3.8% growth for the fiscal year 2024/25. This reassessment comes after robust performance during the year's first half, aligning with forecasts from a Reuters poll of economists.
Egypt's central bank recently reported a 4.3% growth for the October-December quarter, predicting an increase to 5.0% from January to March. The IMF noted enhancements in public sector project management and tax procedures as key factors in managing economic pressures. These reforms, aimed at increasing domestic revenue through tax base expansion, are starting to show positive outcomes.
(With inputs from agencies.)
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