CAIRO (AP) – The International Monetary Fund said it has allowed Egypt to draw down about $2.3 billion from previously approved loans, noting that the country has made progress in restoring economic stability and controlling inflation as part of a reform program.
The IMF said in a statement Wednesday that the decision to release funding was based on a review of government reforms, which it believes have brought about a “broad-based economic recovery” in the world’s most populous Arab country. It pointed out that gross domestic product grew at a rate of 4.4% from 2024 to 2025.
A $3 billion bailout loan to Egypt approved in 2022. Increase to $8 billion in 2024 — Efforts to rebuild an economy hit by a staggering foreign exchange shortage and soaring inflation, which reached 38% in September 2023.
Inflation fell to 11.9% in January, the Washington-based fund said in a statement.
Measures Egypt has taken to combat inflation include floating the Egyptian pound and raising interest rates.
However, the IMF noted that progress has been “uneven.” The report said much of the economy remains in the hands of the state and “determined efforts to reduce the influence of the state in the economy are essential.”
The Egyptian economy is hit hard Fallout from the coronavirus pandemic Russia’s full-scale invasion of Ukraine,and Israel-Hamas war in Gaza.
Additionally, attacks by the Houthi rebel group occurred in Yemen. red sea route Revenue from the Suez Canal, a major source of foreign exchange, was drastically reduced. The attack diverted traffic away from the canal and around the tip of Africa.
According to the latest government statistics, about 30% of the country’s population of more than 108 million people live below the poverty line.
