Prime Highlights
- The Egyptian government has confirmed that no new financial burdens will be placed on citizens in the petroleum and natural gas sectors as the IMF-backed reform program enters its final year.
- IMF reviews have praised Egypt’s stabilization efforts, boosting investor confidence and supporting expectations of stronger economic growth.
Key Facts
- Egypt recorded a primary fiscal surplus of 5% of GDP in fiscal year 2024–25, alongside improved balance-of-payments indicators and a narrower current-account deficit.
- Remittances reached about $34 billionin the first 10 months of the year, while non-oil exports are projected to grow by over 20% in 2025 compared with 2024.
Background:
Egypt’s government has said it will impose no new financial burdens on citizens in the energy sector as the country moves into the final year of its economic reform program agreed with the International Monetary Fund (IMF).
Prime Minister Mostafa Madbouly said the targets set with the IMF for the remainder of the program do not include measures that would affect ordinary Egyptians, particularly in petroleum and natural gas pricing. His remarks were aimed at addressing public speculation over potential new austerity steps.
Speaking during a weekly press conference following a cabinet meeting in the New Administrative Capital, Madbouly confirmed that the IMF has completed the fifth and sixth reviews of Egypt’s reform program. He added that agreements have also been reached on the targets for the remaining seventh and eighth reviews, which are expected to conclude within the next year.
According to a statement published on the official Cabinet Presidency Facebook page, the prime minister noted that the final phase of the program required extensive discussions with the IMF to align on objectives, while maintaining a focus on economic stability and social considerations.
He also cited a recent Moody’s report that noted a sharp decline in inflation to 12.5 percent year on year in October, greater exchange-rate flexibility, and clearer progress in reducing the current-account deficit, alongside expectations of stronger economic growth.
On external inflows, Madbouly said remittances reached around $34 billion in the first 10 months of the year, up from $23.7 billion in the same period last year. Non-oil merchandise exports are expected to rise by more than 20 percent in 2025 compared with 2024.
Tourism remains a central pillar of Egypt’s growth strategy. The prime minister said the country welcomed about 18.8 million tourists in 2025, up from roughly 15 million in 2024, and reaffirmed a target of attracting 30 million visitors by 2030.
Meanwhile, investment activity continues to gather pace in the Suez Canal Economic Zone, where new agreements exceeding $1.15 billion have been signed across multiple sectors, including projects linked to solar energy supply chains.
Finance Minister Ahmed Kouchouk described IMF negotiations as “very positive,” saying stronger revenues and sound fiscal results reflect the underlying potential of the Egyptian economy.
