IMF Boosts Egypt's Economic Growth Forecast to 4.7% for 2027 Amidst Reform Success

Minister of Finance Ahmed Kouchouk announced that the International Monetary Fund (IMF) has revised its economic growth forecast for Egypt upwards to 4.7 percent in 2027, an increase from the previously projected 4.4 percent. Minister Kouchouk highlighted that enhanced clarity and transparency in dealings with investors are crucial for improving predictability and bolstering confidence in Egypt's economic trajectory.

Speaking at open dialogues with international investors during meetings hosted by JPMorgan and Bank of America on the sidelines of the annual meetings of the International Monetary Fund and the World Bank, the Minister stated, "Our economy is moving in the right direction, and indicators are improving as economic and fiscal reforms are implemented." He further elaborated, "We are pursuing a balanced approach to sustain improvements and financial stability, stimulate investment, and increase production and exports." Minister Kouchouk also noted, "We have adopted a proactive approach to addressing shocks, which has received positive responses from investors and markets. We also have promising investment opportunities, along with incentives and tax and customs facilitations that support economic activity and the business community."

Kouchouk added that Egypt has demonstrated strong fiscal performance, supported by economic activity growth and increased private-sector investment. The primary surplus reached 4.9 percent, while the budget deficit decreased to 5.8 percent of gross domestic product (GDP) in the last fiscal year. He pointed out that the government's strategy of offering tax facilitation, fostering partnerships, and building trust with taxpayers has led to a significant increase in voluntary compliance and tax revenues by approximately 27 percent, without imposing additional burdens.

Furthermore, Kouchouk indicated Egypt's commitment to reducing the external debt of budget-sector entities by an annual amount of one billion to two billion dollars. He also stated, "The government also aims to diversify its funding sources and instruments and extend debt maturities to meet financing needs at the lowest possible cost and over the longest possible repayment period."