The International Monetary Fund’s (IMF) staff team has finalised the details required to present the fourth review for Egypt’s Extended Fund Facility arrangement to the IMF’s Executive Board, the Managing Director of the IMF, Christine Lagarde, said on Friday.
“The Board will meet in the coming weeks to discuss the review and I will recommend that the Board approve the review,” Lagarde added in a statement from the IMF.
The Egyptian authorities embarked on an ambitious economic reform programme in 2016 that is being supported by an IMF financial arrangement, said Lagarde, adding”since then, Egypt has made substantial progress as evident in the success achieved in macroeconomic stabilisation.”
Egypt’s growth rate is now among the highest in the region, the budget deficit is on a declining trajectory, and inflation is on track to reach the Central Bank of Egypt’s target by the end of 2019, mentioned Lagarde.
Unemployment in Egypt has declined to around 10 %, which is the lowest since 2011, and social protection measures have been expanded, she added.
“It is important to build on the progress achieved thus far and to press ahead with structural reforms that facilitate private sector-led growth and job creation, as well as measures to increase transparency and accountability that help improve governance. This will help attain higher and more inclusive growth and will ensure better living standards for all Egyptians,” she noted.
“I would like to take this opportunity to commend the patience and commitment of the Egyptian people to the reform process. This will pave the way for higher and more inclusive growth for the long term, and I reiterate that the IMF stands ready to help achieve a more prosperous future for Egypt.”