IMF mission chief Ivanna Vladkova Hollar stated Tuesday that Egypt’s stabilization efforts are yielding "significant gains," with the economy showing signs of robust growth. GDP growth rose to 4.4% in the 2024/2025 fiscal year, up from 2.4% the previous year, driven by non-oil manufacturing, transport, financial services, and tourism.
Despite external challenges, the balance of payments
improved as the current account deficit narrowed, bolstered by resilient
remittances, tourism revenues, and non-oil export growth.
Fiscal performance remained strong with a primary surplus of
3.5% of GDP. Tax revenues surged 36% during the 2024/2025 fiscal year, fueled
by tax and customs facilities that expanded the base and improved private
sector compliance. However, Hollar noted that Egypt's tax-to-GDP ratio remains
modest by international standards.
The IMF also commended the Central Bank of Egypt for maintaining an appropriately tight monetary policy while adopting a "cautious and gradual" easing approach to ensure inflation continues to decline.