Further increase in global oil prices would put pressure on Egyptian budget: IMF

share on:
The International Monetary Fund (IMF) said in its staff report after the third review of the Egyptian economy that a further increase in global oil prices would put pressure on the Egyptian budget and require a larger adjustment of domestic fuel prices to achieve cost recovery and preserve the fiscal consolidation objectives under the economic programme.

ALSO READ   Achraf Hakimi Becomes First Moroccan Footballer to Win Champions League

The Egyptian economic programme gains added importance in uncertain global financial conditions, mentioned the report, adding that there has been a shift to capital outflows in recent months as tightening global financial conditions have contributed to a pullback by investors from emerging markets.

Egypt’s comfortable level of foreign reserves leaves it well positioned to manage any acceleration in outflows, said the report, adding that the global situation heightens the importance of Egypt’s maintaining the sound macroeconomic policy framework established under the economic programme and consistent policy implementation.

ALSO READ   IPOB: Court orders temporary forfeiture of N100m bail bond by sureties

“These risks are mitigated by the authorities’ strong record of reform implementation and a sound macroeconomic policy framework,” said the report, noting that  global risks highlight the need to broaden and accelerate structural reforms to sustain private sector-led growth that will absorb the rapidly growing labour force and ensure that the benefits are perceived more widely.

ALSO READ   Oluwo of Iwoland Says He Has The Right Swag To Lead The Youths

The post Further increase in global oil prices would put pressure on Egyptian budget: IMF appeared first on Daily News Egypt.

Leave A Comment Below
share on: