The International Monetary Fund (IMF) said on April 6 that Egypt’s total public debt is expected to continue shrinking to nearly 74% of the gross domestic product (GDP) by FY 2022/23, backed by the country’s its economic reform program, Invest-Gate reports.

The figure is projected to be driven by the recovery of the country’s tourism, investment, and construction sectors, in addition to the expansion in the gas extractives and proceeding with the implementation of strong structural reforms, according to a statement released on the fourth review of Egypt’s Extended Fund Facility.

Additionally, Egypt’s inflation rate is set to range between 13 and 14% by the end of the current fiscal year, the IMF added.

“Monetary policy remains anchored by the medium-term objective of bringing inflation to single digits. The recent pick-up in headline inflation reflected temporary increases in food and energy prices, but a restrictive monetary policy stance has helped to reverse the increase and keep core inflation well anchored,” read the statement.

“This year’s primary surplus target of 2% of GDP appears on track, which would achieve a cumulative fiscal adjustment of 5.5% of GDP in three years,” the statement added.

Egypt has successfully weathered recent capital outflows, but consistent policy implementation will be essential to further strengthen policy buffers such as containing inflation, enhancing exchange rate flexibility, and reducing public debt.