The International Monetary Fund said Tuesday that Egypt is making progress toward macroeconomic stability but still needs to expand its tax base, following a recent review mission in the country.
An IMF team visited Cairo from May 6 to May 18 for the fifth review of an $8 billion support agreement signed in March 2024.
“Egypt has made substantial progress toward macroeconomic stability,” said IMF Mission Chief for Egypt Vladkova Hollar. “Growth is expected to strengthen further, with our forecast for the fiscal year 2024/25 upgraded to 3.8% due to stronger-than-expected performance in the first half.”
A Reuters poll last month also predicted 3.8% growth for the year that began in July.
The IMF noted that Egypt’s central bank reported 4.3% growth in the October-December quarter and projected 5.0% for January-March.
The IMF statement said better oversight and control of public infrastructure projects were helping manage demand pressures, while reforms to modernize and streamline tax and customs systems were showing early signs of success.
“Alongside these efforts, domestic revenue mobilization will need to continue, mainly by widening the tax base and streamlining tax exemptions,” the IMF said.
The IMF’s fourth review of the program was completed in March, unlocking a $1.2 billion disbursement.
