Author: Rania Hassan

It seems like everything that can hurt global trade started after COVID-19 forced many countries to shut their borders for most of 2020 and early 2021. In the three years following their reopening, international trade has witnessed mounting risks from wars in the Middle East, Ukraine and countries seeking to expand their influence over the Red Sea and Gulf of Aden.  The World Trade Organization (WTO) Global Trade Outlook said threats in 2025 will be diverse and intertwined, ranging from “regional conflicts, geopolitical tensions and rising protectionism” to inflation, consumption and countries’ monetary policy strategies.  “There is a high degree…

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With the pound’s foreign exchange rate continuing to devaluate toward record levels and annual inflation above 25% since January 2023, according to official data, effectively and quickly reducing Egypt’s poverty is increasingly vital.  Data aggregator Statistica reported poverty levels in Egypt have dropped by only 0.6% to 27.3% in 2023 versus 2022, continuing a slow downward trend since 2018, when it reached 32.7%. In October, the Cabinet met to discuss the next phase of tackling poverty, with Prime Minister Mostafa Madbouly saying microlending is essential, as it encourages the least fortunate members of society to start small businesses. Minister of…

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For the past 13 years, Egypt has survived economic challenges every two to three years. It started with the 2011 and 2013 revolutions. In 2015, there was the first currency black market followed by the first significant devaluation by the end of 2016 when the pound lost half its value. COVID-19 in 2020, the Russia-Ukraine war in 2022, and the Gaza in 2023 all pushed Egypt’s economy to the brink. “The government had to step in and stimulate the economy after seeing investments nearly stall between 2011 and 2013,” Hassan El Khatib, the newly-appointed Minister of Investment and Foreign Trade,…

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Egypt has been in and out of crises since 2008. It started with fallout from the global financial crisis, which slashed the country’s GDP growth rates from 7.2% in 2007 to 4.7% the following year. Since then, the government has suffered a myriad of significant domestic and regional disruptions that noticeably raised the country’s macroeconomic risk profile. Egypt’s macroeconomic risks started with two revolutions two years apart (2011 and 2013). A raging currency black market in 2015 led to a devaluation in late 2016 when the pound lost half its value within weeks. In February 2020, COVID-19 lockdowns halted the…

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A one-on-one with Alex Segura-Ubiergo, IMF Egypt senior resident representative, on how the IMF perceives the country’s economic future. Replies were edited for length and clarity How does the IMF view the impact of global economic conditions on Egypt’s economy? Global conditions continue to present important challenges for Egypt, especially through the negative impact of the reduction of maritime traffic through the Red Sea, which is reducing Suez Canal receipts. In addition, the risks of escalation in the regional conflict can also weigh on investor sentiment. These risks are, however, mitigated by a possible improvement in sentiment toward emerging markets…

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Finding good-paying jobs with suitable promotion prospects is particularly difficult during tough times. “Complex economic conditions typically coupled with slow job creation cycles have turned entrepreneurship into a viable alternative” to a corporate position, said a September report from Entlaq, Egypt’s first entrepreneurship-specialized think tank. The 200-page document details the state of the country’s entrepreneurship ecosystem in the first half of 2024. “Egypt has experienced notable developments, including a rise in venture capital investments in key sectors like fintech and health tech, alongside stronger public-private partnerships,” Mohamed Ehab, CEO of Entlaq, said in the report. “These advancements are encouraging signs…

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S&P Global Ratings has affirmed Egypt’s credit ratings at B-/B, maintaining a positive outlook, highlighting the country’s progress in implementing reforms since the liberalization of its exchange rate regime in March, a statement showed on Saturday. Positive outlook The rating agency noted that Egypt’s external liquidity and fiscal accounts are bolstered by a significant rise in foreign direct investment (FDI), a robust donor program, and steady inflows from portfolios and remittances. Thanks to a tight monetary policy and high interest rates since March, the government has managed to allocate approximately 70% of its revenue to interest payments, S&P said. The positive…

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The Grand Egyptian Museum Authority announced on Wednesday that trial operations for its Main Galleries began on October 16, 2024, offering visitors an exclusive preview of twelve curated exhibition halls, an official statement showed. GEM trial phase This trial phase is part of the museum’s efforts to ensure a seamless visitor experience ahead of its highly anticipated official opening, the statement noted. The Grand Egyptian Museum’s (GEM) Main Galleries offer a look at thousands of years of history, from prehistoric times (700,000 BC) to the Roman era (around 394 AD). Visitors will see a variety of artifacts organized into three…

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Egypt’s annual urban consumer price inflation increased for the second consecutive month in September, rising to 26.4% from 26.2% in August, driven by a significant surge in energy costs, according to official data released Wednesday. Egypt’s inflation rises The index rose by 2.1% month-on-month, matching the rate from August, and reversing a 0.4% decline in July, according to data from Egypt’s statistics agency, CAPMAS. Food and beverage prices, the largest component of the inflation basket, increased by 27.7% compared to the previous year. On a monthly basis, food prices rose by 2.6% in September, up from 1.8% in August. September’s…

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Throughout the pharaonic era, gold and other minerals were used in everything from utensils to crowns and even plating the Giza Pyramids, as evidenced by surviving artifacts. Research published in 2020 by Egypt Oil & Gas, a government-owned portal, said the nation’s oldest mining activities date to about 3,100 B.C. However, mining for precious metals and minerals faded over time as searching for oil and gas took over. In 2018, then Minister of Petroleum and Mineral Resources Tarek El Molla launched the country’s first national strategy to revive the mineral mining sector. In the Egypt Mining Forum (EMF) conference in…

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