A combination of soaring commodity and energy prices coupled with an ongoing onslaught of global monetary tightening has added immense pressure on Egypt’s economy. One of the Middle East’s most indebted nations, Egypt, has sought the help of international economic institutions and regional partners to alleviate pressures and instigate rapid economic productivity. However, this ever-increasing dependency on foreign economic assistance has left the country debt-ridden, knee-deep in austerity measures with little signs of enhanced economic growth. According to Timothy Kaldas, a leading Policy Fellow at The Tahrir Institute for Middle East Policy, although “debt levels remain manageable as a percentage of gross domestic product (GDP), the issue is, to date, the state has failed to adequately increase revenue and will continue to depend on debt financed growth to sustain itself and its ambitions.” Egypt’s fiscal policies have accrued high public debt, continued to implement poorly targeted subsidies, resulted in an over-reliance on food imports and an overvalued currency. The amalgamation of these economic pressures have pushed the country to consider one loan agreement after the other. Crisis in Ukraine has also triggered massive global supply chain disruptions, and an unprecedented…
