Wednesday, July 11, 2018

#EGYPT: Economic Reforms Bring #IMF Investment, But End Of Subsidies Causes Consumer Prices To Soar

[world politics news]

The International Monetary Fund has approved the fourth installment of a $12 billion, three-year loan for Egypt, which now totals just over $8 billion. It's part of an aid deal signed in 2016 to support Cairo's economic reform program, which the Washington-based lender has repeatedly praised. Since then, the government has imposed harsh austerity measures and started to phase out subsidies on many goods and services, causing fuel prices to rise as much as 50%, and electricity rates by about 25%. The nation's deficit rose to 12.5% of GDP in the 2015-2016 tax year.


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