A recent memo by the Institute of International Finance (IIFC) showed that the program agreed upon by Egypt and the International Monetary Fund in December last year derailed ahead of its first review, in large part due to the authorities’ reluctance to implement two perceived important reforms in the program: moving towards a flexible exchange rate and reducing the state's impact on the economy.
The trade deficit has fallen by almost 30 percent. The sharp increase in tourism, aided by currency depreciation, has also balanced the balance of services. The current account deficit is expected to shrink significantly, from 3.5 percent of GDP in fiscal 2022 to 1.1 percent in fiscal 2023. The institute attributed the reason to FDI inflows, which will help finance the deficit, compared to the expected outflows from the portfolio of securities estimated at about two billion dollars.
Source (Al-Arabiya.net Website, Edited)
