IMF’s Lagarde says Egypt reforms have positive outcome

International Monetary Fund Managing Director Christine Lagarde on Thursday said Egypt had brought concrete and positive outcomes due to its economic reform programme started in late 2016.

Lagarde said in a press conference in Washington during the annual spring meetings that she met with Egyptian President Abdel Fattah al-Sisi in Washington, saying the IMF remained committed to supporting Egypt.

Earlier on Tuesday, Lagarde said in a statement that Egypt’s economy “continues to grow robustly”, with unemployment falling to its lowest levels since 2011.

“The economy continues to grow robustly, unemployment is at its lowest level since 2011, foreign exchange reserves are at comfortable levels, and public debt is on a downward trajectory supported by growth-friendly consolidation efforts,” Lagarde said in a statement published on the IMF’s official website following the talks.

Egypt has implemented tough reforms under a $12 billion loan programme began in late 2016 that involved deep cuts to energy subsidies, new taxes, and a floated currency in a bid to draw back investors who fled after its 2011 uprising.

“President El Sisi and I discussed progress under Egypt’s economic reform program supported by the IMF’s US$12 billion Extended Fund Facility. The programme has progressed well and the final review is planned for the coming months.

Lagarde said she and President Sisi agreed on the importance of continuing with the authorities’ structural reform agenda, which aims to support inclusive growth and address constraints to private sector development.

“These reforms will help achieve more sustainable, inclusive, and private-sector led growth, which will create jobs for Egypt’s young population. It is also important to ensure that adequate resources are available for social protection.”

“I reiterated the Fund’s commitment to support Egypt and its people.”