The International Monetary Fund approved the release of $2.3 billion to Egypt following successful economic reforms that helped stabilize the country’s economy. Egypt’s inflation dropped from 38% to 11.9% and GDP grew 4.4% as the nation worked to recover from multiple economic challenges.
The International Monetary Fund announced Wednesday it will provide Egypt access to approximately $2.3 billion from a previously authorized loan package, recognizing the nation’s success in achieving economic stability and curbing inflation through comprehensive reform efforts.
According to the IMF’s Wednesday statement, the funding release comes after evaluating Egypt’s reform initiatives, which the organization says have generated “a broad-based economic recovery” in the Arab world’s most populated nation. The Fund reported Egypt’s gross domestic product expanded by 4.4% between 2024 and 2025.
Egypt’s original $3 billion emergency loan, granted in 2022, was expanded to $8 billion in 2024 as officials worked to address severe foreign currency shortages and runaway inflation that reached 38% in September 2023.
By January, inflation had dropped significantly to 11.9%, according to the Washington-based organization’s statement.
Egypt implemented several anti-inflation strategies, including allowing the Egyptian pound to float freely and raising interest rates.
Despite these gains, the IMF cautioned that advancement “has been uneven.” The Fund emphasized that excessive state control over the economy persists, stating that “decisive efforts to reduce the state’s footprint in the economy will be essential.”
Egypt’s financial struggles stem from multiple crises including the COVID-19 pandemic, consequences from Russia’s comprehensive attack on Ukraine, and the ongoing Israel-Hamas conflict in Gaza.
The situation worsened when Houthi militants from Yemen began targeting Red Sea shipping lanes, dramatically reducing Suez Canal income—a crucial source of foreign currency for Egypt. These attacks diverted maritime traffic around Africa’s southern tip instead of through the canal.
Government statistics show approximately 30% of Egypt’s population of over 108 million people live below the poverty threshold.