A still image of Julie Kozack, Director of the Communications Department at the International Monetary Fund (IMF). Speaking in a press briefing.
Speaking in a press briefing held on Thursday, Kozack praised Egyptian authorities for their efforts to unify the exchange rate and tighten both monetary and fiscal policies, noting that these steps have begun to yield tangible results.
Kozack statements came in her answer on Ahram Online questions on the new positive developments of the Egyptian economy and also on the expected timing of the IMF mission to the country for the discussions regarding the completion of the fifth and sixth reviews of the Extended Fund Facility (EFF) $8 billion loan programme and the first review of the Resilience and Sustainability Facility $1.3 billion loan deal.
“Egypt’s annual inflation declined to 12 percent in August, investor sentiment has improved, and fiscal performance has exceeded program targets,” Kozack said, adding that economic growth strengthened to 4.4 percent in FY2024/2025,” Kozack highlighted.
With macroeconomic stabilization underway, Kozack emphasized the urgency of advancing structural reforms to unlock Egypt’s full growth potential, create high-quality jobs, and build resilience against future shocks. “It’s now critical for Egypt to move forward with deeper reforms,” she said, highlighting the importance of reducing vulnerabilities and fostering inclusive, sustainable development.
She added that IMF confirmed that the fifth and sixth reviews of Egypt’s Extended Fund Facility program will be combined, with discussions ongoing regarding the timing, expected to take place this fall. Progress on key reforms will be central to moving ahead, including steps to improve the business climate and enhance private sector participation.
Kozack pointed specifically to the implementation of Egypt’s state ownership policy and asset divestment program, which aim to rebalance the role of the state in the economy and ensure fair competition. “These reforms are essential to level the playing field between public and private actors,” she noted.
She also addressed Egypt’s progress under the Resilience and Sustainability Facility (RSF), citing efforts to integrate climate goals into macroeconomic planning, roll out a renewable energy roadmap, and strengthen climate risk monitoring within the financial sector.
“These are important steps not just for Egypt’s economy, but for its people,” Kozack concluded.
The IMF/World Bank Group annual meetings are set to kick off on 13 October over six days, which are expected to witness talks with the Egyptian delegation to the meetings under the chairmanship of the CBE Governor Hassan Abdalla on the three reviews that are anticipated to be completed before end of the year.
Global growth shows resilience, inflation outlook remains mixed
On the global front, Kozack noted that the global economy has held steady in the first half of 2025 despite persistent uncertainty, but signs of a slowdown are beginning to emerge.
“Global growth has shown resilience, but we’re starting to see early indicators of deceleration,” Kozack said, noting that inflation trends vary widely across regions.
“We’ve seen upward pressure on headline inflation in countries like the UK, Australia, and India, while inflation remains subdued in China and parts of Asia,” she added.
Kozack attributed this divergence partly to the impact of tariffs, explaining that in some economies, tariff hikes act as supply shocks, while in others they suppress demand and dampen inflation. In the US, Kozack acknowledged limited inflationary impact from tariffs so far, but cautioned that the duration of this trend remains uncertain. Further analysis is expected in the IMF’s upcoming World Economic Outlook and the US Article IV consultation scheduled for November.
Turning to domestic US developments, Kozack addressed concerns over the ongoing partial government shutdown. “We’re closely monitoring the situation,” she said.
“The impact will depend heavily on how long the shutdown lasts and the specific modalities involved. We hope a compromise can be reached to ensure continued federal funding”.
On financial markets, Kozack pointed to elevated asset valuations flagged in recent editions of the IMF’s Global Financial Stability Report.
“We’ve raised concerns about stretched valuations in both equity and other financial markets,” she said, adding that an updated assessment will be released during the IMF’s annual meetings.
Regarding the US monetary policy, Kozack reaffirmed the IMF’s stance on central bank independence. “Independent but accountable central banks are essential for policy credibility,” she said.
“In the US, we see a softening labour market and inflation moving toward the Federal Reserve’s target, though upside risks remain. The Fed will need to continue monitoring incoming data closely”.
Kozack’s remarks underscore the IMF’s cautious optimism about global economic resilience, while highlighting the need for vigilance amid evolving inflationary pressures and policy uncertainties.
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