Egyptians Face Inflation Crisis Despite $50 billion Bailout

Egyptians are reportedly cutting back on everything from eating meat during Ramadan, entertaining friends and traveling as the country grapples with high levels of inflation. 

According to Bloomberg, inflation hit a record of over 35 percent in 2023. The price of sugar has doubled and onions have risen more than 400 percent. Prices in February rose sharply from January and data is expected to show another price increase in March. 

A recent influx of cash from the UAE, the IMF, the World Bank and the EU amounting to more than 50 billion dollars was meant to save the economy. But many Egyptians are bracing for higher costs. 

In 2016, Egypt faced a similar crisis. It devalued its currency and slashed subsidies to secure a $12 billion IMF loan which stabilized Egypt’s economy but lead to high inflation.  

On March 18^th Prime Minister Mostafa Madbouly expressed anticipation for a decrease in prices as more foreign currency becomes available facilitating imports. However, according to Bloomberg, the continued depreciation of the currency may lead to short-term price increases. This would lead to more pain for Egyptians already struggling to put food on the table.