CAIRO, July 12 (Xinhua) -- The International Monetary Fund (IMF) predicted Thursday Egypt's current account deficit will fall to 2.6 percent of its GDP in 2018-2019 from 4 percent in its previous review.

The IMF, in a report published on its website, said the macroeconomic conditions in Egypt have continued to improve during 2017-2018, with external and fiscal deficits narrowing.

The report expected Egypt's GDP to grow up to 5.5 percent in the same period.

It added the ongoing monetary policy stance appears appropriate to contain the effects of the rising fuel and electricity prices.

In June, Egypt increased fuel and electricity prices by up to 66.6 percent and 26 percent respectively, as required by the IMF to continue the implementation of the country's economic reform program.

Over several years of instability due to political turmoil, Egypt has been suffering economic recession in the past years. It devaluated its local currency in November 2016 as part of a strict three-year economic reform program based on austerity measures, including fuel and energy subsidy cuts and tax hikes.

The liberalization of the Egyptian pound's exchange rate encouraged the IMF to support Egypt's economic reform plan with a 12-billion-U.S. dollar loan, two thirds of which has been delivered already.