The position of Egypt in the global economy was never considered as a boon or a boost. However, in the scenario of a global economic downturn the unstable midwest countries always perform badly. The same is the scenario in this downturn.
The Egyptian economy is facing a dramatic time. Egypt is battling surging inflation in the midst of weakening currency, many Egyptians are struggling to meet the day’s end
The state-owned central agency that monitors statistics and mobilization released data indicating that the annual inflation rate was 21.9% in December, up from 19.2% in November.
In comparison with an inflation rate of 6.5 percent in the month of December 2021, before the inflation got out of hand in 2022 following the start of Russia’s conflict with Ukraine, which shook the global economy.
Prices increased across a wide range of Egyptian industries, including those for housing, furniture, even food, and healthcare. The average price of food increased by 4% in December, with dairy and fruits seeing the largest price increases (7% and 6%, respectively).
Lower-middle-class people are highly affected by this phenomenon as higher inflation has increased the prices of necessary items. As per official estimates, nearly 30 million Egyptians live in poverty.Since the government launched an extensive reform program in 2016 to restructure the battered economy of the nation, the majority of Egypt’s more than 104 million citizens have experienced price increases
That draconian program includes painful economic conditions that are caused by mismanagement of the government and slashing of subsidies for water, electricity and fuel.
The economy which was already in a pretty rough position before 2019 hit pretty bad when the world went into lockdown in the beginning of 2022 and the Russia-Ukraine war added more fuel to that. The majority of Egypt’s wheat imports historically came from eastern Europe, making it the world’s largest importer of the grain.
The president on Monday has assured people that even though the country is facing a very difficult situation , urging people to have trust in his administration. The country has decided to curb state spending and stopped the implementation of costly projects
Millions of people found their savings running out as the cost of living increased as a result of the Central Bank of the country’s recent decisions to increase its main interest rate and devalue the Egyptian pound.
The IMF looking at the downtrodden condition of the economy approved a $3 billion support package after a series of reforms.