Egypt's Inflation Rate Hits 14-Year Low Amid Global Economic Uncertainty

Strategic Insights -

Egypt's inflation rate has hit a 14-year low, dropping 5.7% in fiscal year 2019/20 compared to 13.9% in the previous year, according to the Ministry of Planning and Economic Development. Despite the positive economic indicators, the country has faced significant challenges due to the COVID-19 pandemic, with several sectors experiencing a downturn. However, the government's reform efforts have contributed to the economy becoming more flexible and resilient to external shocks.

Key Takeaways:

  • Egypt's annual inflation rate receded to 5.7% in fiscal year 2019/20, the lowest level in 14 years.
  • The Egyptian economy's average performance in FY 2019/20 was progressing at a good rate, with a growth rate of 5.6% in the first half and 5% in the third quarter.
  • The National Program for Economic and Social Reform has been successful in implementing economic reforms, including a 23% increase in government investment growth rates.
  • Egypt's unemployment rate decreased to about 7.7% in the period from January 2020 -- March 2020.
  • The International Monetary Fund (IMF) predicted a positive growth rate of about 2% for Egypt during 2020.
  • Egypt experienced an estimated EGP 206bn loss in gross domestic product (GDP) during FY 2019/20 due to the COVID-19 crisis.

Statistics:

  • Egypt's inflation rate: 5.7% in FY 2019/20, down from 13.9% in FY 2018/9.
  • Economic growth rate: 5.6% in the first half of FY 2019/20, 5% in the third quarter.
  • Government investment growth rate: Increased by 23% in June to March 2020.
  • Unemployment rate: 7.7% in January 2020 -- March 2020.
  • Gross domestic product (GDP) loss: Estimated EGP 206bn in FY 2019/20 due to the COVID-19 crisis.

Sources:

  • Egyptian Ministry of Planning and Economic Development
  • Daily News Egypt (2020)