Egypt’s $2.5b Package to Help Curb Inflation
Egypt’s $2.5b Package to Help Curb Inflation

Egypt’s $2.5b Package to Help Curb Inflation

Egypt’s $2.5b Package to Help Curb Inflation

Egypt announced a $2.49 billion package of income tax discounts, bonuses for state employees, increased pension payments and cash subsidies for lower- and middle-income Egyptians to cope with soaring inflation. The package will go into effect July 1, the start of the fiscal year, according to a cabinet statement.
The measures are partially designed to defuse discontent over steep price hikes resulting from reforms introduced in November, including flotation of the Egyptian pound, the introduction of value-added tax and partial lifting of subsidies on fuel, AP reported.
The reforms, part of a deal to secure a $12-billion loan from the International Monetary Fund, sent inflation soaring to more than 30%. More of the subsidies on fuel and electricity are expected to be lifted this summer.
President Abdel Fattah El-Sisi says the reforms, though biting, were the only way to revive the economy, battered by years of turmoil and high-profile terror attacks blamed on militants waging an insurgency in the north of the Sinai Peninsula.
Monday’s package is welcome news to millions of Egyptians because it comes soon after the start of the holy month of Ramadan when observing Muslims refrain from food and drink from dawn to dusk. During the month, Egyptians spend much more than they usually do on food, feasting on large sunset meals along with traditional sweets. Food prices usually inch higher in response to Ramadan’s increased demand.
Despite the difficult economic decisions taken by the government in November, Egyptian citizens have yet to feel any improvement in their living conditions. They are, however, to face another blow with the new rise in prices and the ensuing inflation hike because of the expected cut of subsidies with the start of the new fiscal year on July 1.


Short URL : https://goo.gl/7RHGQw
  1. https://goo.gl/rLszDr
  • https://goo.gl/3u888F
  • https://goo.gl/9ySBLM
  • https://goo.gl/2dELYq
  • https://goo.gl/XhNFk0

You can also read ...

IMF expects demand growth for housing to remain robust.
The International Monetary Fund says any pickup in Australian...
The telecommunications and computers industry saw  flat year-on-year performance in the third quarter.
Singapore’s domestic wholesale trade expanded by 11.3% in the...
Household debt topped the list of key systemic risks cited by market watchers at 87%.
South Korea’s growing household debt and geopolitical risks...
Jordan’s real GDP is forecast to grow at 3% in 2018 and 3.2% in 2019.
Jordan’s economy which has been straddled with mounting debt...
Nigeria Recovery Fragile
Nigeria’s economy grew 1.4% year-on-year in the third quarter...
The export climate index remains elevated.
Japan’s exports grew 14% over a year earlier in October on...
Michel Barnier during his speech in Brussels, Nov 20, said: Britain would lose its “passporting” rights to let banks automatically do business in the EU after it leaves in March 2019.
European Union Brexit chief Michel Barnier said on Monday the...
Mongolia Rated Positive
Fitch Ratings agency has revised Mongolia’s credit rating from...

Add new comment

Read our comment policy before posting your viewpoints

Enter the characters shown in the image.