Arab Finance: Egypt has made significant progress in its economic reform and stability program despite a challenging external environment, said Taline Koranchelian, the International Monetary Fund (IMF) Deputy Director at the Middle East and Central Asia Department.

During an online press conference held by the IMF on Thursday, October 15, Koranchelian explained that Egypt’s economic reform program, supported by the IMF’s Extended Fund Facility (EFF), has helped the country reduce external imbalances, enhance exchange rate flexibility, achieve fiscal discipline, and restore investor confidence.

She added that sustaining these gains will require the continued implementation of cautious policies and structural reforms to bolster private sector activity.

Both the eighth and final review of the economic reform program under the EFF, as well as the third review under the Resilience and Sustainability Facility (RSF), will take place in the fourth quarter (Q4) of 2026, Koranchelian indicated.

It is worth noting that the IMF approved financing totaling about $1.8 billion for Egypt after completing the seventh review of the EFF in July. The fund recently raised its forecast for Egypt’s economic growth in fiscal year (FY) 2026/2027 to 4.7%.

For his part, Jihad Azour, the IMF's Director for the Middle East and Central Asia, said the IMF has approved around $48 billion in financing for countries across the Middle East and Central Asia region since 2020.

Azour further noted that the economic growth rate in the MENA and Pakistan region is projected to decline from 3.3% in 2025 to a contraction of 1.3% in 2026, before rebounding to 6.6% in 2027.

Oil-exporting economies, directly affected by disruptions to energy and trade, are expected to experience a sharp contraction in 2026, although higher oil prices may provide some support to their fiscal and external positions.

“The outlook depends critically on how quickly energy production and trade normalize, and on countries’ ability to preserve macroeconomic stability,” he said at a news conference during the annual meetings of the IMF and World Bank in Bangkok.

The official urged policymakers to prioritize price stability, focus on rebuilding financial reserves, and enhance resilience against future shocks.