The International Monetary Fund (IMF) said that Egypt is among the major emerging and frontier market economies witnessing vulnerabilities and shocks, such as growth challenges and oil price falls, Invest-Gate reports.

The North African country is facing blows of external financing vulnerabilities and financial sector issues, IMF added in the Global Financial Stability Report released on April 13.

“The sharp decline in economic output and sudden increase in borrowing costs could hurt economies [such as Egypt] with limited fiscal space, high financing needs, or external financing vulnerabilities,” the report added.

IMF also expected Egypt to achieve economic growth rate of 2% in 2020, yet this figure will accelerate to 2.8% 2021, respectively, based on the World Economic Outlook report titled published on the same date.

In February, Egypt held talks with IMF over a non-financial structural reform program, which will be focusing on abolishing bureaucracy to lure more private investments.