Egypt secured nearly $1.8 billion in fresh financing from the International Monetary Fund (IMF) after the lender completed reviews of the country’s economic reform program, reinforcing investor confidence in one of Africa’s largest economies despite ongoing regional tensions.

The IMF Executive Board approved $1.5 billion under Egypt’s Extended Fund Facility (EFF) and $272 million through the Resilience and Sustainability Facility (RSF), bringing total IMF disbursements to the country to approximately $7.3 billion.

Economic growth gains momentum

The IMF said Egypt continues to show resilience as reforms—including exchange-rate flexibility, energy pricing adjustments and tighter fiscal management—help cushion the economy against geopolitical shocks in the Middle East.

Real GDP expanded 5% in the third quarter of fiscal year 2025/26, while growth for the first nine months reached 5.2%. The Fund expects the economy to grow 4.6% for the full fiscal year, supported by stronger domestic activity and continued structural reforms.

Inflation eases as external position improves

Headline inflation slowed to 14.3% in June after earlier pressure from currency depreciation and higher fuel prices. While the IMF expects inflation to pick up later in 2026, it forecasts a gradual return toward the Central Bank of Egypt’s target range as monetary policies remain disciplined.

Egypt’s external accounts also strengthened. Record remittance inflows, resilient tourism earnings and improving Suez Canal revenues helped offset rising energy import costs, keeping the current account deficit at an estimated 4.5% of GDP. Gross international reserves remained above the IMF’s reserve adequacy benchmark.

Privatization and fiscal reforms attract investors

The IMF highlighted Egypt’s continued progress on state asset sales, including the completion of the Gabal El Zeit transaction and additional divestments in publicly listed companies. Together, the deals generated approximately $520 million in proceeds.

The government also exceeded its fiscal targets, posting a stronger-than-expected primary surplus and higher tax revenues while reducing gross financing needs by five percentage points of GDP during the fiscal year.

The International Monetary Fund (IMF) is an international financial institution with 191 member countries. The organization promotes global financial stability, sustainable economic growth, international monetary cooperation and policies that support employment, productivity and long-term prosperity.