IMF Confirms Egypt Progresses Economic Reforms Urges Broader Tax Base

The International Monetary Fund (IMF) has acknowledged Egypt's significant progress toward macroeconomic stability, highlighting improvements in economic growth and reforms in tax and customs procedures. The IMF upgraded Egypt's growth forecast for the 2024/25 fiscal year to 3.8%, supported by stronger-than-expected economic performance and central bank data showing 4.3% GDP growth in late 2024 and a projected 5.0% growth in early 2025. Enhanced oversight of large public infrastructure projects has helped contain demand pressures, contributing to economic stability. Despite these positive developments, the IMF emphasized the critical need for Egypt to broaden its tax base and reduce tax exemptions to sustain fiscal improvements and support domestic revenue mobilization. The March 2025 approval of the program’s fourth review unlocked a $1.2 billion disbursement, reinforcing confidence in Egypt’s reform efforts. Overall, while cautious optimism prevails, effective implementation of ongoing reforms remains essential for long-term economic resilience.