IMF sets December target to clear Egypt's last programme review

The International Monetary Fund (IMF) has dispatched a mission to Egypt to negotiate a staff-level agreement on the country's economic program, with the aim of presenting a draft proposal to the IMF's executive board for approval by mid-December. Egypt has been under an Extended Fund Facility (EFF) program since December 2022, with a previous expiration date of October but now extended until December 15, 2026.

During this week's visit, the IMF's mission is discussing the reviews and program of Egypt's Resilience and Sustainability Framework (RSF), which it joined in 2025. The final disbursement is expected to be around $2.3 billion. In July, the fund completed its seventh review of Egypt's EFF and the second of its RSF program, unlocking approximately $1.8 billion in funding, bringing the total purchases and disbursements under the two arrangements to about $7.3 billion.

The discussions focus on maintaining a tight monetary policy and a fiscal consolidation plan, with the ultimate goal of preserving Egypt's macroeconomic stability. Structural reforms remain a central topic, with the aim of reducing the state's economic footprint and promoting stronger, private sector-led growth. Priorities include accelerating Egypt's divestment programme, implementing state ownership policy, leveling the playing field between public and private sector companies, and improving the business climate.

The IMF has previously highlighted Egypt as a positive example of how countries can undertake reforms, citing its strong macroeconomic buffers, flexible exchange rate, and swift policy response as factors that have helped it absorb the effects of the Iran war. According to the IMF's World Economic Outlook, Egypt's economy is expected to grow from 4.4% in the previous year to 5.1% this year, before easing to 4.7% in 2027.

Consumer prices are projected to decrease from 12.1% in 2025 to 9.4% in 2026, before rising to 11% in the following year.