Executive Board published a report about the Arab country and forecasted non-oil GDP growth at 5.4% in 2019.
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Fund allowed Egypt to draw USD 2 billion, the fifth part of the USD 12 billion agreement signed in 2016. IMF acting managing director praised the reforms made by the country.
The Arab country is struggling with high public debt and lackluster economic growth, made worse by repercussions from fighting in Syria. After visiting the country, an International Monetary Fund staff team recommended a surplus-inducing fiscal plan, structural reforms and financial sector enhancement.
IMF report shows positive shows positive figures on the Arab country, such as a 2.6% GDP growth projection this year, against 2018 2.2%. Qatar achieved fiscal consolidation, despite lower oil prices, according to the fund.
IMF expects the Arab country’s economy to accelerate 6.7% this year after a 3.6% growth in 2018.
IMF released its economic outlooks of the Middle East, North Africa, Afghanistan, and Pakistan. The fund asks for reforms that lead to growth so that it may be possible to create jobs amid a slowing global economy, volatile oil prices, and uncertainty around trade tensions.
Recovery of the international prices of the commodity last year have strengthened the confidence in the country, but there are still some challenges, particularly the fiscal consolidation, according to IMF report.
The draft budget for the 2019/2020 financial year provides for stronger GDP growth and public debt reduction.
Global expansion is weakening amid risks, says International Monetary Fund economic counsellor and director of Research Gita Gopinath.
Managing director of the IMF said the country needs financial assistance more than ever in order to deal with the great number of refugees while doing the tax adjustment.
The country has a USD 160 million loan agreement in place with the International Monetary Fund to support a reforms program.
The institution announced a new loan program. The primary focus will be on promoting small businesses, which account for most of the jobs in the country.
December 4 will see the termination of the mechanism guaranteeing that foreign investors could pull out their money in dollars after selling their investments in Egyptian securities. The move could allow more volatility for the Egyptian pound.
The IMF advises Middle East and Central Asia countries to take urgent action to reduce debt as they face tightening global conditions.
