The International Monetary Fund (IMF) expects Egypt’s inflation to continue a downward trajectory in the fiscal year 2025/26, which will begin on July 1.
Julie Kozack, Director of the IMF’s Communications Department, told a press briefing in Washington on Thursday night that inflation would ease to 13.4 percent.
“Our projections for growth in inflation for the next fiscal year — Egypt uses fiscal year, so it’s a 2025/26 fiscal year — indicate a growth rate of 4.1 percent. This is an increase from 3.6 percent in the previous fiscal year. On the inflation side, we expect inflation to continue a downward trajectory and reach 13.4 percent by the end of this period,” she said.
The IMF’s Executive Board concluded the 2025 Article IV consultation and completed the Fourth Review under the EFF arrangement on March 10. This enabled the authorities to draw $1.2 billion. The Executive Board at that time also approved a resilience and sustainability facility (RSF) arrangement, which paved the way for Egypt to access about $1.3 billion.
Earlier this month, Ivanna Vladkova Hollar, IMF Mission Chief for Egypt, said the country’s fiscal consolidation has progressed and has contributed to a declining debt-to-GDP.
She said the Egyptian authorities have made considerable progress in stabilizing the economy since March 2024, despite a very challenging external environment.
