Egypt has successfully completed the first IMF review under the Resilience and Sustainability Facility. The review reflects progress in implementing policies aimed at strengthening economic stability.

Egypt has successfully completed the first IMF review under the Resilience and Sustainability Facility. The review reflects progress in implementing policies aimed at strengthening economic stability.

Egypt Completes First IMF Review Under Resilience and Sustainability Facility, Signaling Progress in Economic Reforms

The International Monetary Fund (IMF) has reached a staff-level agreement with Egypt on the first review under its Resilience and Sustainability Facility (RSF), alongside the fifth and sixth reviews under the Extended Fund Facility (EFF) arrangement according to IMF announcement. This milestone reflects Egypt's ongoing efforts to stabilize its economy amid regional and global challenges, including regional security tensions and shifting external financial conditions.

Egypt's macroeconomic performance has shown resilience, with real GDP growth rising to 4.4 percent in fiscal year (FY) 2024/25, up from 2.4 percent in the prior year, driven by non-oil manufacturing, tourism, and transportation sectors according to IMF data. The balance of payments has improved, supported by strong remittance inflows, tourism receipts, and non-oil exports. Foreign currency reserves reached $56.9 billion as of December 2025, while non-resident investments in local-currency debt totaled $30 billion according to IMF reports.

Fiscal discipline has been maintained, with a primary balance surplus of 3.5 percent of GDP in FY 2024/25, bolstered by a 36 percent year-on-year increase in tax revenues. However, the tax-to-GDP ratio remains at 12.2 percent, below international benchmarks, underscoring the need for further tax base broadening according to IMF analysis. The Central Bank of Egypt (CBE) has pursued a cautious monetary easing strategy, contributing to a decline in headline urban inflation to 12.3 percent in November 2025, though disinflationary pressures remain uneven according to IMF findings.

The IMF emphasized the importance of accelerating structural reforms to transition toward a private-sector-driven economy. Key priorities include advancing the divestment program, reducing the state's economic footprint, and enhancing competition in banking and trade. Progress has been made on RSF-related initiatives, including a renewable energy implementation plan and climate risk monitoring directives for banks according to IMF statement.

While the agreement requires final approval by the IMF's Executive Board, the review underscores Egypt's commitment to fiscal sustainability and long-term resilience. Continued focus on social spending, debt reduction, and governance reforms will be critical to sustaining momentum according to IMF assessment.

, December 22, 2025.