Public investment has increased
The development of high value-added industries remains limited
The trade deficit has been shrinking
The reliance on exports of raw materials is high
Remittances support the current account balance
Capital inflows have been volatile
Public debt is high
Inflation has surged to record highs
Financing conditions for businesses have deteriorated
Both foreign exchange reserves and foreign assets of banks are low
The banking system seems sound against the background of low risk taking
Banks’ exposure to sovereign debt is high in Egypt
Egyptian sovereign bonds yields have risen
The policy interest rate has been raised substantially
The official exchange rate shifted substantially in 2022
Interest payments weigh on the budget balance
Debt sustainability is particularly sensitive to interest rates
Non-tax revenue has declined over the past decade
The spending mix has significantly changed
The quality of roads has improved in recent years
There is untapped potential to scale up renewable energy
Energy-related sectors, industry, and transportation are the largest emitters
There is room for improvement in the renewable energy sector