World media attention briefly shone on Egypt while it hosted COP27 in November 2022. Since then, less has been said about the continuing daily struggles facing workers and youth. Falling living standards, failing public services and brutal repression are the prospects for 2023, as throughout 2022.
Egypt’s economy had not recovered from the Covid pandemic when the Russia Ukraine war exploded. Around 82% of its wheat was imported from these two countries. The Egyptian pound’s falling value increased the cost of imports. Food and drink prices were up 31% in the year to November. Choosing between pricier bread or higher government spending to keep the subsidised price stable for 70% of the population, the government held the subsidised price – but cut the weight of a loaf from 110 to 90 grams. Workers and the poor are reducing the amount of food they eat and buy for their families and often looking for extra work.
Foreign debt reached record levels of nearly $158 billion last March. Government debt (already high) increased further, forcing it to look for new loans. The finance minister reported a $16 billion funding gap over the next four years and negotiated with the International Monetary Fund (IMF) for a $16 billion loan – its fourth since 2016. After six months of negotiations, Egypt only got $3 billion. The conditions for a higher sum proved unacceptable.
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