The International Monetary Fund (IMF) maintained a favourable outlook on Egypt’s economy in its third major review of the country’s loan programme on Thursday. However, IMF warned against the risks of rising fuel prices and an investor exit from emerging markets. The Fund maintained its previous 5.5% projection for Egypt’s GDP growth in FY18-19, supported by a recovery in tourism and rising natural gas production. The Fund said the latter should help Egypt reduce its overall current account deficit to 2.6% in 2018-19, down from a previous projection of 4%. The review stated that Egypt would face a financing gap of USD1bn for the year, which would be plugged through either a Eurobond or the country’s own reserves. IMF estimated external debt to likely rise to USD91.5bn, from a previous projection of USD85.2bn in its second review. Egypt’s fuel subsidy bill is expected to account for 2.1% of GDP in FY18-19, the report said, up from a previous estimate of 1.2%, on the back of higher global fuel prices.