Page 24 - issue 66 en
P. 24
ELITE
ELITE
On October 21, President Abdel Sisi’s remarks followed an October
Fattah el-Sisi stated that Egypt 18 increase in fuel prices of 13% to
may need to renegotiate its 17%, in line with an IMF-backed plan
program with the International to fully eliminate fuel subsidies by
Monetary Fund (IMF) due to the December 2025. According to Fitch,
economic strain caused by regional the government is growing
geopolitical risks. He expressed increasingly concerned about the
concern that the reforms required potential for social unrest, fueled by
under the program could further economic pressures and Egypt’s
burden the population. This comes stance on the Gaza conflict. The Fitch
after Egypt has implemented Society Risk Index indicates that
several challenging measures this unrest has returned to 2019 levels, a
year, including a 36% depreciation period marked by controversial
of the Egyptian pound in March constitutional amendments that
and successive hikes in extended el-Sisi’s potential rule until
administered prices. Inflation, 2030 and granted him control over
which fell from a peak of 35.7% in the judiciary.
February to 25.7% in July, has been Critical reforms remain for Egypt:
climbing again since August, driven the elimination of fuel subsidies,
by increases in fuel and electricity adherence to a flexible exchange
prices. Inflation is projected to rate, the public release of financial
reach around 28% in October and data, and the privatization of
November, exacerbated by the military-owned enterprises. Despite a
recent fuel price hikes and 70% drop in Suez Canal revenues, 24
seasonal factors.
