Egypt has steadied its economy with stronger growth and lower inflation after years of crisis, yet millions of citizens still face high living costs and widespread poverty, especially in rural areas.
High-profile events overshadow domestic reality
The country made international headlines in October when it hosted a Sharm el-Sheikh conference where United States President Donald Trump promoted his Gaza ceasefire plan.
In early November the Grand Egyptian Museum finally opened beside the Giza pyramids, displaying the complete Tutankhamun collection and promising a major tourism boost.
These moments, however, drew attention away from parliamentary elections held the same month. Pro-government lists dominated amid low turnout and complaints of limited opposition space – continuing a trend since President Abdel Fattah el-Sisi came to power in 2013.
“They are even less interesting than under Mubarak,” a Cairo textile businessman said on condition of anonymity. “You barely see campaign posters.”
Gulf billions and IMF support avert collapse
Two years ago Egypt faced acute dollar shortages and inflation above 38%. An expanded USD 8 billion International Monetary Fund loan, European Union and World Bank aid, and large Gulf investments prevented a full-blown crisis.
Growth recovered to 4.4% in fiscal year 2025 from 2.2% the year before. Inflation has fallen to around 12% by mid-2025, the Egyptian pound is stable after a major devaluation, and foreign currency is again available in banks.
The United Arab Emirates pledged USD 35 billion in early 2024 for the Ras el-Hekma development. Qatar signed a USD 29.7 billion agreement in November 2025 to build a luxury resort near el-Alamein.
“Our exports grow every quarter,” the textile businessman said. “Turkish companies are opening factories here because labour is cheap, forcing us to raise wages to keep workers.”
Ordinary Egyptians feel little improvement
Despite better macro figures, non-oil private sector activity has contracted for most of the past five years due to weak consumer spending. More than a third of the population lives in multidimensional poverty, hit hard by subsidy cuts.
Osama Diab, an Egyptian political economist at KU Leuven university in Belgium, said the rescue packages only treat symptoms. “Debt servicing consumes money that should go to jobs and social support,” he told Newsroom.
Fuel prices rose again in November, with electricity and cooking gas increases set for early 2026 under International Monetary Fund conditions.
Mahmoud, a farmer in his forties from the Nile Delta, said the new museum would help Cairo hotels but not villagers. “Subsidies on fuel and food are gone and everything costs more. Tourism money never reaches us,” he said.
Last year’s labour law reduced mandatory annual wage rises and widened the use of temporary contracts – measures the government called business-friendly but many workers see as weakening job security.
For most Egyptians the recovery remains distant. As Mahmoud put it: “We need help here, not just grand openings.”
