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Despite Obstacles Egypt Economic Reforms On Track: IMF

September 27, 2017
Photo: Cliff Owen/AP

Amid surging inflation and many Egyptians finding it difficult to make ends meet, the International Monetary Fund (IMF) said in a new report on Tuesday that Egypt “is off to a good start” in implementing its new economic reform program. Despite having fallen short on cutting fuel subsidies and balancing its fiscal budget, the country is making progress at curbing public spending, boosting confidence among investors, and addressing the increased inflation rate generated by the new economic measures. The promising performance demonstrated by the Arab world’s most populous nation allows the international lender to release a new $US 1.25 billion payout, bringing the total disbursement to $US 4 billion. “Macroeconomic stability is still fragile and the reform agenda is difficult, but the authorities have demonstrated a strong resolve to contain the risks,” the IMF said in its first review since it agreed to lend Egypt $US 12 billion dollars as part of a program aimed at reforming the country’s struggling economy. Following the decision by Egypt’s Central Bank to devaluate the country’s currency exchange rate against foreign currencies in November last year, annual inflation spiked, reaching 31 percent in April,…


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