Egypt’s economy is entering a phase of recovery thanks to economic reforms

From the analytical perspective of the economic situation of Egypt, there are several factors suggesting the recovery of the country’s economy.

Those factors include the growing support of the Gulf countries, where Saudi Arabia, Kuwait and the UAE are pumping billions of US dollars in the Central Bank of Egypt. The Egyptian economy is thus granted the opportunity to withstand the pressures amounting from the collapse of production and decline in tourism.

Government’s attempt to adopt austerity policies aims to boost revenues and cut its deficit while attracting investors. To achieve the desirable outcome, the government has taken several steps:

Fuel prices rose as the government removed a portion of its subsidy. Although this decision has faced a lot of criticism, Egypt's President Abdel Fattah el-Sisi has defended his recent decision to partially scrap subsidies on fuel, calling them a necessary "bitter pill".