Egypt’s Economy May be Improving, but this is not Inclusive nor Sustainable

Source: Carnegie Endowment

Author(s): Wael Gamal

Original Link: https://carnegie-mec.org/diwan/77391

In fiscal year 2017–2018, ending in June, Egypt’s GDP grew by 5.3 percent. This was the highest growth rate since 2007–2008, when the economy grew by 7.2 percent, just before it was hit by the global economic crisis and political instability starting in early 2011.

However, despite such improvement, growth in Egypt is neither inclusive nor sustainable. Indeed, most Egyptians are feeling the burden of soaring prices and low incomes. That is because in November 2016 the government introduced an austerity program and devalued the Egyptian pound within the framework of a $12 billion loan agreement with the International Monetary Fund (IMF).

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