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Inflation (Economics)

Egypt's Economic Crisis Takes a Toll on Tipping Culture

Strategic Insights

— 1 min read

As Egypt struggles with an economic crisis, even the simple act of tipping is becoming a burden for many citizens. With inflation stuck in the double digits, the once-common practice of handing over cash to skip a line or show appreciation for service is now a luxury that only the wealthy can afford. In this new reality, even the most basic interactions, like parking or receiving medical care, have become opportunities for graft and bribery.

Key Takeaways:

  • Tipping has become increasingly expensive in Egypt, with some estimates suggesting that the value of a bribe that was once worth $18 is now worth only $2.
  • Inflation has been stuck in the double digits since the country's latest economic crisis started in early 2022, reaching a record high of 38 percent in September 2023.
  • Despite economic reforms, progress remains slow, and Egyptians are still reeling from years of sacrifice, belt-tightening, and deepening poverty.
  • Many Egyptians are forced to tip as a way of life, with some even relying on tips to supplement their low wages.
  • Some see giving extra money as a religious duty or as an act of charity, a way of bridging the gap between those with something to give and those with next to nothing.
  • The government is slashing bread, gas, and electricity subsidies crucial to many poor Egyptians, exacerbating the economic crisis.

Statistics:

  • Inflation in Egypt declined to 11.7 percent last September, after the country received multi-billion-dollar bailouts from the International Monetary Fund, the United Arab Emirates, and the European Union.
  • The value of a bribe that was once worth $18 is now worth only $2, due to the country's economic crisis.
  • Just under 30 percent of Egyptians were living in poverty, according to the most recent official statistics from 2019.
  • The shift in Egypt's economy has led to a change in tipping culture, with some people now giving up to 1,800 pounds (about $38) to skip a line or receive extra help.

Sources:

  • "Egypt's Economic Crisis Takes a Toll on Tipping Culture" by Mauricio Lima for The New York Times
  • "Egypt's Economy: A New Low" by Hania Mousa for Al Jazeera
  • "Egypt's Inflation Reaches Record High of 38 Percent" by Rana Mamdouh for Bloomberg

Photo credits:

  • Mauricio Lima for The New York Times
  • Ludovic Marin/Agence France-Presse -- Getty Images
  • Hanaa Habib/Reuters

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