Main Points
- Egypt was one of the fastest growing emerging markets in pre-COVID-19 times, yet lagging behind its peers
- External pressures in the aftermath of COVID-19 and the Russia-Ukraine conflict eroded the buffers Egypt had built, forcing the CBE to break the EGP’s peg with the USD
- EGP depreciation should bear most of the burden of the necessary external adjustment, helping Egypt to avoid a full-blown balance of payments crisis
- Egypt has strong upside potential for growth
Special Issue: Egypt