Egypt's positive economic indicators, yet shrinking purchasing power: why?

Egypt's government points to positive economic indicators. Yet the purchasing power of Egyptians has fallen. How do those two things fit together?

That is the question at the heart of the latest episode of "Hawa Masr", a talk show. Host Tamer Ezzeddine sits down with Mahmoud Sami, a member of the House of Representatives (the lower house of Egypt's parliament), and Wael El-Nahhas, an economic adviser and capital markets expert. Together they look at why purchasing power has declined even as officials announce good numbers.

The debate has a long backdrop. In March 2024, Egypt's central bank let the pound float and raised interest rates by 600 basis points, just as an expanded IMF program of about $8 billion was announced. The move drove inflation and eroded what people's incomes can buy.

For households, the gap between headline figures and what a pound buys at the shop is what really counts. The episode looks at why those two pictures still look so different.