IMF commends Egypt’s reform progress and assesses global economic challenges

The International Monetary Fund (IMF) has reiterated its support for Egypt’s reform initiatives as the country grapples with economic difficulties intensified by regional challenges. Speaking from Washington, D.C., on Thursday, IMF Communications Director Julie Kozack highlighted Egypt’s dedication to implementing reforms that ensure macroeconomic stability.

An IMF mission recently concluded its visit to Egypt, marking substantial progress in discussions for the fourth review of the country’s 46-month loan agreement. The program, initiated in 2022 and expanded to $8 billion earlier this year, aims to address critical issues such as soaring inflation and foreign currency shortages. Upon completing the review, Egypt could gain access to an additional $1.2 billion in financing.

Turning to Europe, the IMF extended condolences to those affected by recent catastrophic floods in Spain. Despite severe localized damage, Kozack reported that the overall economic impact has been limited. Key infrastructure, including transportation and industry, faced only minor disruptions. The IMF plans to provide a detailed analysis in its upcoming World Economic Outlook update in January.

In Argentina, the IMF noted encouraging signs of economic stabilization following a challenging year of contraction. The country’s leaders are working on new arrangements to manage its $44 billion debt with the Fund. Progress in Argentina’s stabilization efforts includes reduced inflation, fiscal surpluses, improved foreign reserve coverage, and early signs of recovery in economic activity and real wages. The IMF pledged continued support to help solidify these gains and address ongoing challenges.

These developments underscore the IMF’s commitment to assisting member countries in overcoming diverse economic challenges and fostering long-term stability through targeted reforms.