IMF Highlights Progress in Egypt’s Reforms, Assesses Global Economic Challenges
The International Monetary Fund (IMF) reiterated its support for Egypt’s reform program, noting significant progress despite ongoing economic difficulties exacerbated by regional tensions. Speaking in Washington, D.C. on Thursday, IMF Communications Director Julie Kozack praised Egypt’s commitment to key reforms designed to ensure macroeconomic stability.
The IMF recently completed a mission to Egypt, making headway in discussions for the fourth review of the country’s 46-month loan program, which was approved in 2022 and expanded to $8 billion earlier this year. The program aims to address Egypt’s severe economic challenges, including high inflation and foreign currency shortages. Completing the review could unlock an additional $1.2 billion in financing for the country.
Limited Economic Impact of Spain’s Floods
The IMF also addressed the economic effects of the recent devastating floods in Spain, offering condolences to those impacted. While the floods caused significant damage in some areas, Kozack noted that the broader economic impact has been limited. Key infrastructure sectors such as transport and industry saw only minor disruptions. A more detailed assessment will be provided in the IMF’s World Economic Outlook update in January.
Argentina’s Stabilization Efforts Show Progress
The IMF also pointed to signs of economic stabilization in Argentina, following a challenging year of contraction. As the country works on restructuring its $44 billion loan with the IMF, Kozack reported progress in Argentina’s stabilization program, including reduced inflation, fiscal surpluses, stronger reserve coverage, and early signs of recovery in economic activity and real wages. The IMF pledged continued support to help Argentina maintain these gains and address remaining challenges.
These updates underscore the IMF’s ongoing efforts to assist member countries in tackling complex economic issues and implementing reforms necessary for long-term stability.