Egypt Daily News – Despite recent government claims of economic recovery, prominent economist Dr. Rashad Abdo has warned that the perceived improvement in Egypt’s economic situation may be misleading and disconnected from the lived reality of most citizens. In a televised phone interview on “Hazrat Al-Muwatin” (The Citizen’s Forum), Abdo challenged optimistic government narratives, calling for deeper reforms rather than reliance on international institutions and surface-level indicators.
Speaking to journalist Sayed Ali on Al-Hadath Al-Youm channel, Abdo criticized Prime Minister Mostafa Madbouly’s recent remarks that Egypt has “moved past the crisis.” According to Abdo, these declarations appear overly optimistic in the absence of real, tangible benefits for the average Egyptian. “We don’t want to paint a rosy picture only to later shock citizens when prices climb again,” he said.
IMF Agreement Yields Little for Citizens
Abdo pointed to Egypt’s 10-year engagement with the International Monetary Fund (IMF), a program initiated to stabilize the economy through structural reforms. Although the agreement is set to conclude this year, he said, “We have yet to witness meaningful change on the ground, but there’s no noticeable drop in prices, no significant improvement in daily living conditions.”
The economist emphasized that while macroeconomic indicators may suggest progress—such as the recent appreciation of the Egyptian pound against the dollar—these shifts have had little to no impact on inflation, food prices, or industrial recovery. “There’s still no major boost in local manufacturing, no expansion in export capacity, and no significant improvement in employment levels,” he noted.
Currency Gains, But Reality Stagnant
Abdo dismissed the significance of the Egyptian pound’s recent gains, pointing out that Egypt still depends heavily on imported goods. “We’re vulnerable to global market fluctuations. Unless local production picks up, currency improvements mean little to the average consumer still facing high prices.”
He argued that genuine progress cannot rely on external endorsements or loans alone. “We cannot stake our future on IMF press releases. These statements often mislead the public into believing the crisis has passed, when in reality the fundamentals remain weak.”
A Call for Real Reform, Not International Applause
Abdo urged the Egyptian government to shift focus toward internal economic transformation. This includes concrete investment in industrial production, agricultural development, job creation, and export stimulation. He warned that Egypt cannot afford to rely solely on international loans, aid packages, or statements from financial institutions.
“What we need is not foreign praise, but domestic action,” he asserted. “The path forward lies in real, actionable reforms in agriculture, manufacturing, and employment not in more promises from abroad.”
Summary
While the Egyptian government touts signs of economic recovery, Dr. Rashad Abdo paints a more sobering picture. For him, any true economic turnaround must come not from international agreements or favorable exchange rates, but from hard, sustained work to revitalize Egypt’s productive sectors and empower its workforce. Until then, he warns, talk of recovery may remain more illusion than reality.
