The International Monetary Fund reaffirmed its commitment to supporting Egypt as it continues to assess the economic repercussions of escalating tensions in the Middle East.
Speaking to Al Arabiya Business, IMF spokesperson Julie Kozack said the Fund remains engaged with Egyptian authorities as conditions evolve, emphasizing ongoing cooperation to sustain the country’s reform program.
Kozack noted that IMF staff are working closely with government officials to advance the seventh review of Egypt’s economic program, with the aim of reaching completion by the summer. The review is considered a key milestone in ensuring the country meets the requirements set under its financing arrangement.
The assessment comes amid heightened regional instability, particularly following the Iran–Israel conflict. Despite these developments, the IMF indicated that the direct impact on Egypt’s economy has so far remained “relatively limited.”
However, the country has faced indirect pressures, including rising fuel and electricity prices, which have driven up transportation and operational costs across sectors.
Kozack highlighted that Egyptian authorities have taken “proactive and coordinated measures” to contain the fallout. She pointed to exchange rate flexibility as a key factor that has helped absorb external shocks, while also preserving the country’s foreign currency reserves.
Additionally, the government has established a high-level crisis management committee to ensure a swift response to evolving challenges. Authorities are also attempting to strike a balance between maintaining fiscal discipline and expanding social spending to support vulnerable groups.
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