The International Monetary Fund (IMF) has downgraded its projections for Egypt’s real gross domestic product (GDP) growth in fiscal year (FY) 2022/2023 to 4.8%, according to the IMF’s World Economic Outlook update report issued on July 26th.
It is worth noting that the IMF previously set its projection for the country’s GDP growth at 5.0% for FY 2022/2023.
On the other hand, the international institution has maintained its forecast for Egypt’s real GDP growth at 5.9% in FY 2021/2022, the recent data showed.
In a separate press release focused on Egypt, the IMF’s Executive Board said that the previously approved 12-month Stand-By Arrangement (SBA), which expired on June 25th 2021, to support authorities in Egypt to deal with the Covid-19 pandemic had succeeded in achieving several reforms.
Despite the full implementation of the structural reform agenda backed by the SBA, the IMF believes that “decisive progress on deeper reforms is needed”, the release highlighted.
Moreover, the IMF noted that this is needed in order to bolster the private sector development, enhance governance, and reduce the role of the state.
On June 26th 2020, the Executive Board endorsed a $5.2 billion 12-month SBA at 184.8% of quota for Egypt as part of a two-step support strategy after a purchase under the Rapid Financing Instrument on May 11th 2022 at 100% percent of quota.
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