The International Monetary Fund is encouraged by Egypt’s efforts to remove fuel subsidies within three years and push inflation down to single digits, IMF Mission Chief for Egypt Chris Jarvis said on Wednesday. Egypt last year committed to an ambitious economic reform program that includes lifting subsidies, raising taxes, and loosening capital controls as part of a three-year $12 billion IMF loan. Speaking on Egyptian television channel CBC, Jarvis said the Fund was encouraged by a government plan to remove subsidies on fuel products within three years, but said that the IMF would leave the timing of individual price hikes to Egypt. Jarvis said Egypt’s goal is to push inflation down to single digits, which he said is possible within three to four years. Inflation has soared since Egypt floated its currency in November, with year-on-year headline inflation at 31.5 percent in April.

Source: Egypt Independent May 18, 2017 11:24 UTC