The Central Bank of Egypt (CBE) announced that the annual headline inflation rate jumped 24.4 percent in December 2022, compared to 21.5 percent in November of the same year.
Recently, global inflationary pressures began to re-emerge after signs of recovery for the global economy from the turmoil caused by the emerging coronavirus pandemic.
This is mainly due to the developments of the Russian-Ukrainian conflict as risks related to the global economy increased from the conflict
On top of these pressures is the noticeable rise in global commodity prices, supply chain disruptions and rising freight costs.
There is in addition to the fluctuations in financial markets in emerging countries, which led to domestic inflationary pressures and increased pressure on the external balance.
Over the past period the Egyptian economic reform program succeeded in achieving many gains, on top of which is raising the efficiency of Egypt’s macroeconomic indicators; this paved the way for facing any challenge.
Economic turmoil that might arise as a result of mainly external factors.
The gains of the economic reform program had a great impact in protecting the economy from excessive volatility and crises, and the structural reforms adopted by the Central Bank and the Egyptian government.
This helped to provide exceptional economic measures and stimulus packages over the past two years with the aim of providing support to citizens and easing the burden on them during the coronavirus crisis.
The Financial Stability Report for 2020, issued by the Central Bank of Egypt on Monday, showed the success of the Egyptian financial system in containing the repercussions of the coronavirus pandemic.
The economy seems to continue to achieve positive growth rates during the fiscal year (2020/2021), despite the world’s exposure to an economic downturn during 2020 brought on by the pandemic.
The CBE’s report explained that this came about thanks to the flexibility and diversity of the Egyptian economy, and the effective proactive measures and policies taken to confront the repercussions of coronavirus pandemic, supported by the gains of the economic reform program.