Egypt: a recovering economy tested by tensions in the Middle East
DECRYPTION - The country has overcome its shortage of dollars and returned to solid growth. But its energy dependence, the weight of the debt and the slow opening to the private sector are weakening its recovery.
Egypt is doing better, but it is not out of the woods. The central bank raised rates by 1 point last week, bringing its main operating rate to 20.5%. A surprise decision, the first increase since March 2024, which reveals the fragility of the Egyptian recovery.
Despite annual inflation falling to 13.9% in September, far from the peak of 38% in 2023, regional tensions and their consequences on energy prices threaten the recovery. However, the activity resists. According to IMF projections in October, Egyptian growth reaches 5.1% in the 2025-2026 financial year, and it is expected to slow to 4.7% in 2026-2027.
A country much more resilient than before “It is a country much more resilient than it was before in absorbing external shocks,” underlines Victor Lequillerier, head of economic studies at Bpifrance. The contrast with the crisis triggered in 2022, after the invasion of Ukraine, is clear.
Machine-translated from French
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- Le Figaro3 Nov, 16:05
| Publisher Le Figaro (established tier) | +76 |
| Detailed summary | +2 |
| Total | 78 |
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