A year into its most serious economic crisis since 2016, Egypt once again faces a moment of reckoning, as the prerogative for serious structural reform becomes ever more urgent.
The collapse in the country’s foreign exchange reserves following Russia’s invasion of Ukraine has had a devastating impact on Egypt’s hitherto rapidly expanding but fragile economy. While recording stellar top-level gross domestic product (GDP) growth, such gains were achieved mostly via gas exports and government expenditure, with the government increasingly reliant on inflows from portfolio investors lured by attractively priced short-term debt.
