Egypt: The Resilience of the Egypt Economy in the face of COVID-19 Shocks and High Commodity Prices

Despite the COVID-19 pandemic and the rise in commodity prices globally, Egypt succeeded in maintaining inflation rates within the Central Bank of Egypt’s (CBE’s) target range of 7 percent (±2 percent) in 2021, at a time when many countries of the world are witnessing a wave of high inflation. Egypt has adopted rational economic and monetary policies over recent years that have taken into account achieving stability in commodity prices, as well as setting interest rates in line with inflation targets. This put Egypt at the forefront of emerging markets in reducing its rate of inflation.