Cost of Living Continues to Rise in Egypt

Over the past year, almost all countries worldwide have seen an increase in the cost of living. This is particularly true in countries like Egypt, where the national minimum wage is much lower than the average.

Unfortunately, this increase has left many Egyptians unable to meet basic living costs. As well as this, it has also caused social and sometimes even security problems. If you want to know more about the cost-of-living crisis in Egypt and what the future holds for this country, keep reading below:

The Cost-of-Living Crisis in Egypt

Until a few years ago, Egyptians who earned a salary of SR7,000 were considered comfortable. However, this is no longer the case. In fact, evidence shows that people who earn this amount or less are now considered to be in poverty. But why has this changed?

The main reason is that salaries are not increasing at the same rate as products or services. This means that Egyptians have to pay more for their goods, but they are not earning enough to cover it. 

In April 2020, the cost-of-living index in Saudi Arabia increased by a whopping 6.29%. This is an even more significant figure than many Egyptians were expecting. Since then, it has continued to climb, increasing another 3% in August. This is upsetting news for people living in this part of the world.

What Does the Future Hold?

Over the last few months, inflation has soared globally on rising food and commodity prices after Russia invaded Ukraine. In fact, worldwide inflation is forecast to reach a massive 5.7% in advanced economies next year and 8.7% in less stable countries. 

While this sounds bleak, the good news for people living in Egypt is that the IMF expects inflation to remain steady in 2023, thanks to the central bank’s tightening monetary policy. 

However, while this sounds much better than what was previously forecast unless salaries are raised to a minimum of SR8,000, people in this country will remain in poverty. And while this is a possibility in the future, it is unlikely to happen anytime soon. 

How Egyptians are Coping During the Cost-of-Living Crisis

To survive, Egyptians must find ways to increase their money and cut costs. One way they are doing this is by taking out personal loans to bridge the pay gap. However, while this might help in the short term, it could lead to more problems down the line. 

Another way Egyptians are trying to survive is by looking for deals and discounts on their shopping. Unfortunately, finding reduced items at a brick-and-mortar store in Egypt can be challenging. The good news is there are many great deals online, including the Jumia coupon codes. These codes work on a massive range of products, including general shopping, men’s wear, and technology. 

No matter where you live, there’s a good chance you’ve felt the impact of the cost-of-living increase. This is particularly true in countries like Egypt. Let’s just hope that, as predicted, inflation remains stable in 2023.