Egypt and the IMF to assess impact of economic reforms on country’s most vulnerable

The International Monetary Fund (IMF) said itplans to work with Egyptian officials to mitigate the impact of recent economic reforms on Egypt’s most vulnerable citizens, according to Bloomberg.

In March, Egypt committed to a series of reforms, including currency devaluation and significant subsidy cuts for essentials such as bread and fuel, as prerequisites for receiving $8 billion in IMF loans.

Now, officials are gathering data to evaluate the effects of these reforms, particularly in light of the Gaza conflict, which has strained Egypt's economy. Tourism has taken a hit, revenue from the Suez Canal has fallen, and consumer costs have risen.

A meeting next week with IMF Chief KristalinaGeorgieva is set to address Egypt’s social support programs and explore ways to better assist those in need.

While Egypt may seek adjustments to reform timelines and targets, it is not requesting additional funds, according to a statement this week by Prime Minister Mostafa Madbouly.

In a recent interview in Washington, IMF Middle East, North Africa, and Central Asia Director Jihad Azour emphasized the importance of Egypt’s commitment to currency reforms and attracting foreign investment, while acknowledging the challenges.

“The high level of uncertainty in the region is not a conducive factor,” Azour said.