In November 2016, the Egyptian government reached an agreement with the IMF on the allocation of a $12 billion loan under the Extended Fund Facility program. To obtain a loan, the Egyptian authorities devalued the national currency by 48% at once, with the possibility of changing the exchange rate.
According to the Fund (up to 2019), the country was considered one of the most dynamically developing markets. There was a high level of income from tourism and income from emigrants. Egypt has put into commercial operation "Zohr" — the largest gas field on the shelf of the Mediterranean Sea.
After the conclusion of the Egyptian Economic Conference in Cairo in 2022, the IMF announced that it had reached an agreement with the Egyptian government on economic policy and reforms. At the same time, the Central Bank of Egypt devalued the currency and raised the key discount rate. The new package is estimated at US$ 3 billion and includes a 46-month Extended Funding Program (EFF). International and regional partners have also agreed on additional financing in the amount of US$ 5 billion in the 2022/23 fiscal year.
The agreements reached with the IMF are a positive measure for the Egyptian economy, as it confirms the commitment of the government of the country to the program of economic liberalization and is likely to open access to additional financing from other international creditors.
Despite the economic consequences of the COVID-19 pandemic, according to the IMF, Egypt's GDP growth rate was 3.5% in 2020, and 3.3% by the end of 2021. To stabilize the economy and the balance of payments, in June 2020, the IMF provided the country with an additional loan in the amount of 5.2 billion US dollars for a period of 1 year. The positive dynamics was supported by the diversification of the economy, a steady level of consumer spending and a significant size of the labor force, which created a dynamic business climate and contributed to the further development of the country's economy. This allowed Egypt to avoid some of the most serious consequences of the COVID-19 pandemic faced by the countries of the region. According to IMF forecasts, the country's GDP will reach 469.1 billion US dollars in 2022, and by 2027, Egypt's GDP is expected to grow to 664.0 billion US dollars with increasing growth rates.
By the end of 2022, the projected inflation rate in Egypt will be 8.5%. The recent weakening of the local currency against the US dollar will bring inflation to a higher level, especially given Egypt's strong import dependence. The effect of the exchange rate shift will also keep inflation at a high level in 2023, with average annual inflation currently projected at 12.0–17.0%. During 2017-2021, there was a positive dynamics of GDP per capita, and, according to forecasts, this indicator will continue to grow until the end of the period under review — up to 21 thousand USD in 2027.
