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Famagusta Gazette

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Economist warns poverty in Egypt could reach 38% amid inflation

ByFamagusta Gazette

Dec 18, 2025

Egyptian economist Alia El‑Mahdi said poverty levels in Egypt may have risen to 37–38% of the population following sharp price increases in recent years, compared with the official figure of 30%.

El‑Mahdi told local television that poverty lines vary depending on measurement, from income thresholds of $2–3 a day to the ability to meet basic needs such as food, water, transport and education.

She noted that a household budget survey in 2021–2022 showed poverty at 32% before subsequent waves of inflation.

She said soaring prices in 2023, 2024 and 2025 have eroded real incomes, pushing more people below the poverty line. El‑Mahdi urged regular reviews of Egypt’s fiscal and economic policies, warning that unchecked borrowing could trigger repeated crises and raise debt costs, undermining the state’s ability to meet citizens’ needs.

She called for sustainable strategies to reduce borrowing, increase domestic revenues and ensure loans are directed to productive projects that generate growth, rather than consumption.

Famagusta Gazette