For 3rd time in row, IMF downgrades Egypt’s economic growth forecast to 4% in current FY

The International Monetary Fund (IMF) reduced its forecast for Egypt’s economic growth during the current fiscal year to 4% in newly released documents released by the Washington based lender on Tuesday, compared to the 4.4% that was projected in October 2022.

The Executive Board of the International Monetary Fund (IMF) approved a 46-month arrangement under the Extended Fund Facility (EFF) for Egypt in an amount of SDR 2,350.17 million (equivalent to 115.4 percent of quota or about US$3 billion), according to a press release on Extended Arrangement Under The Extended Fund Facility by IMF.

The Executive Board’s decision enables an immediate disbursement of SDR 261.13 million (equivalent to about US$ 347 million), which will help meet the balance of payments need and provide support to the budget.

Over the course of the program, the EFF is expected to catalyze additional financing of about US$14 billion from Egypt’s international and regional partners, including new financing from GCC countries and other partners through the ongoing divestment of state-owned assets as well as traditional forms of financing from multilateral and bilateral creditors.