The Economic Pulse

Amid ongoing negotiations with the IMF, there have been concerns over the potential for a new devaluation. However, the government has assured that the Egyptian pound will not face a dramatic devaluation. The exchange rate may fluctuate within a 5% range based on supply and demand, marking a shift from the government’s previous policy of a fixed exchange rate, which contributed to past economic crises. The move toward a flexible exchange rate aims to avoid past mistakes while ensuring a more balanced approach.

Despite a dramatic 92% drop in Suez Canal revenues to EGP 1.0 billion, Egypt managed to offset this through a 108% surge in revenues from special funds, totaling EGP 4.4 billion. This helped achieve a budget surplus of EGP 3.6 billion, compared to EGP 2.6 billion in the same period last year. Additionally, social spending saw significant increases, with the government allocating EGP 9.6 billion to the Takaful and Karama program, a 42.9% growth in food subsidies, and substantial boosts to education and healthcare.