IMF gives Egypt strong marks in third programme review

The International Monetary Fund maintained a favourable outlook for Egypt's economy in its third major review of the country's loan programme on Thursday but warned against the risks of rising fuel prices and an investor exit from emerging markets.

The three-year $12 billion loan programme agreed in late 2016 and aimed at drawing back investors that fled after its 2011 uprising has obliged Egypt to undertake tough reforms such as slashing energy subsidies, imposing new taxes, and floating its pound currency.

The Fund maintained its previous 5.5 percent projection for Egypt's GDP growth in the 2018-2019 fiscal year, supported by a recovery in tourism and rising natural gas production.

The country raked in $2.27 billion dollars in tourism revenues in the quarter from January-March, the latest available data from the central bank showed.

The Fund said that should help Egypt reduce its overall current account deficit to 2.6 percent in 2018-2019, down from a previous projection of 4 percent.