Egypt has the largest economy in Africa. The country’s GDP is expected to be over $490 billion by the end of 2023.
Unemployment in the country is 7%. The number of unemployed in 2023 is insignificant, but falling. Economic growth in the country is 4.2%. Inflation reached over 37% in August 2023. The debt to GDP ratio is over 90%.
Currency depreciation and inflation
Since March 2022, the Egyptian pound (the currency in Egypt) has lost 50% of its value: today the official rate is almost 31 Egyptian pounds to the dollar. The fall of the Egyptian pound began back in 2016, when the country’s government received a loan from the IMF in the amount of $12 billion. Simultaneously with the depreciation of the currency, inflation in Egypt reached a record 37%.
The main reasons for inflation in Egypt:
- lack of hard currency (dollars);
- significant issue of Egyptian pounds;
- growth of external debt.