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Why did people’s purchasing power decrease in Egypt?

Why did people's purchasing power decrease in Egypt?

Cairo: The purchasing power of the people in Egypt has decreased alarmingly, and it is being reported that Egypt is going to become another Lebanon.

According to foreign media reports, Egypt’s economic crisis is deepening, with the devaluation of the Egyptian pound leaving many middle-class Egyptians unable to afford groceries as before.

With Egypt’s currency depreciating by nearly a third since late October and inflation currently hovering above 20 percent, economists suspect things could get worse.

In 2019, there were two or four Lebanese people facing exactly the same problems that the people in Egypt are facing at the moment.

In a 2022 report by the Project on Middle East Democracy (POMED), a Washington-based NGO, Professor Robert Springberg, associated with Canada’s Simon Fraser University, wrote that “between Lebanon’s abysmal economy and Egypt’s struggles, there is a remarkable There are parallels.”

Egypt has always been a popular tourist destination, but the coronavirus pandemic has devastated its tourism sector in recent years, the war in Ukraine has also dealt a blow to the Egyptian economy, and Egypt’s wheat supply has been severely disrupted. The obstacle came.

It should be noted that Egypt has had to rely heavily on external debt for its survival, Egypt has a debt of more than 155 billion dollars, and about a third of its national income goes to repay this foreign debt. .

According to experts, the level of poverty in Egypt is almost the same as the level of poverty in Lebanon, the poverty level in Egypt is 60 percent and Egyptians are living on or near the poverty line.

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