Sisi Commends IMF Review of Egypt's Economic Performance

President Abdel Fattah El-Sisi expressed his satisfaction with the recent International Monetary Fund’s (IMF) praise for the performance of the Egyptian economy amid the outbreak of the pandemic.

Presidential Spokesman Bassam Radi said that Sisi's statements came during his meeting with Prime Minister Mostafa Madbouly, Finance Minister Mohamed Maait and Deputy Finance Minister for Financial Policies Ahmed Kojok.

Al-Sisi also praised the good governance and comprehensive stimulus measures, as well as the accurate implementation of the economic reform program in the past years.

Earlier, head of the IMF team Uma Ramakrishnan said that the Egyptian economy had exceeded expectations, even during the crisis.

“Containment measures, supported by the authorities’ effective crisis management, and strong implementation of their policy program helped mitigate the effects of the crisis”, she said.

“After recording a growth rate of 3.6 percent in FY2019/20, growth is projected to reach 2.8 percent in FY2020/21, with a modest recovery in all sectors except tourism, as the pandemic continues to disrupt international travel. Pandemic-related risks still exist in light of the second global wave of COVID-19 cases,” Ramakrishnan added.

“Subdued inflation in September (3.7 percent)—primarily reflecting lower food prices—triggered the monetary policy consultation clause. The updated financial information of state-owned enterprises and Economic Authorities was published in September,” she pointed out.

“The Central Bank of Egypt’s (CBE) monetary policy remains appropriately accommodative. In this regard, we welcome the CBE’s recent interest rate cuts to further support economic recovery amid muted inflation. The exchange rate has modestly appreciated in the wake of an increase in capital inflows. Continued exchange rate flexibility will help absorb external shocks. Egypt’s banking system remains liquid, profitable, and well-capitalized,” Ramakrishnan concluded.