Egypt economy stablises under Sisi but prices remain to be tamed

Egyptian President Abdel Fattah al-Sisi has revived economic growth and tackled pressing problems in power and gas supply, but as he heads for a second term, he must juggle austerity under an IMF programme with the need to tame inflation.

Sisi inherited an economy in tatters when he took over the presidency in 2014, requiring aggressive reforms that have largely stopped the rot while hurting most Egyptians through a currency devaluation and withdrawal of some price subsidies.

“He’s now at the crossroads that every Egyptian president has found himself in,” said Reham Eldesoki, an independent economist long focused on Egypt. “He needs to push forward on intensive reforms, to move forward in building services and non-oil industry and to make Egypt really investment-friendly.”

Sisi’s performance in consolidating the gains over the next four years - he is set to cruise to victory in a presidential election which began on Monday - will be watched well beyond Egypt’s borders.