Prime Highlights
- IMF approved $2.3 billion for Egyptto support economic stabilisation and extend its programme.
- Syria’s economy is gradually recovering, aided by stronger consumer confidence, electricity supply, and returning refugees.
Key Facts
- Total IMF disbursements to Egypt now reach $5.2 billion, with GDP growth at 4.4% and inflation at 11.9%.
- Syria recorded a small budget surplus in 2025, with inflation slowing to low double digits.
Background
The International Monetary Fund has approved a $2.3 billion disbursement to Egypt after completing program reviews under its Extended Fund Facility and Resilience and Sustainability Facility. The funding includes about $2 billion from the EFF and $273 million from the RSF and extends Egypt’s support programme to mid-December.
The latest tranche brings total IMF disbursements to Egypt to roughly $5.2 billion. The lender said the funds will support economic stabilisation in one of the Middle East and North Africa’s largest economies.
Egypt’s economy has shown improvement as reforms take effect. Real GDP growth reached 4.4% in the 2024–25 fiscal year, while inflation dropped to 11.9% in January. Strong tourism and remittance inflows helped narrow the current account deficit to 4.2% of GDP.
Gross international reserves rose to about $59.2 billion in December, up from $54.9 billion a year earlier. The IMF said successful bond sales, higher foreign investment and increased participation in local debt markets have boosted market confidence.
However, the Fund said progress on deeper structural reforms remains uneven. It called for faster divestment of non-strategic state assets, stronger domestic revenue collection and continued exchange rate flexibility to support private sector growth.
IMF Deputy Managing Director Nigel Clarke said stabilisation measures are working but warned that debt management and state footprint reforms remain critical to meeting programme goals.
Separately, the IMF reported that Syria’s economy is gradually recovering following a recent staff visit to Damascus. Ron van Rooden and his team said that stronger consumer confidence, more electricity supply, and the return of refugees are driving increased activity.
Preliminary data show Syria recorded a small budget surplus in 2025 after limiting central bank financing. Inflation slowed to low double digits, supported by tight monetary policy.
The IMF said Syria has prepared a 2026 budget focused on healthcare, education and infrastructure. It will provide technical assistance on public finance, revenue systems and banking supervision to support recovery and governance reforms.
The Fund added that better economic data and stronger institutions could allow Syria to resume regular IMF economic reviews in the future.
