Egypt one of few countries that controlled inflation: Goldman Sachs

Daily News Egypt
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Egypt is one of the few countries that have succeeded in controlling inflation rates, according to a report by Goldman Sachs of America, one of the largest financial institutions in the world.

Egypt’s achievement comes despite the continued upward trend that major inflation rates have witnessed since the beginning of the year in most parts of the world, the report added.

The “Inflation Monitor” report stated that Egypt, Russia, and Ukraine managed to achieve a decrease in inflation rates during April with the support of low food prices, to decrease in Egypt from 4.4% to 4.1%, in Russia from 5.8% to 5.5%, and in Ukraine from 8.5% to 8.4%.

Goldman Sachs expects the continued success of Egypt in controlling inflation rates, which were recorded at 5.3 % in the fourth quarter (Q4) of last year, to reach 3.9 % in Q2 of this year then rise to 4.8% in Q3 before falling again to 4.4% in Q4.

The international corporation attributed this increase mainly to non-basic factors, mainly factors driven by the effects of lower energy prices in the past year.

The International Monetary Fund had stated that Egypt achieved the largest annual decline in the rate of inflation in emerging markets in 2020 compared to 2019, with a decrease of about 8.2%, as it recorded an inflation rate of 5.7% in 2019/20 compared to 13.9% in 2018/19.

The fund indicated that the inflation rate will continue to be maintained within the target range of the Central Bank of Egypt, pointing out that a significant decline in inflation rates will positively affect the reduction of the cost of long-term borrowing, while Renaissance Capital commented that Egypt has an exceptional experience in reducing inflation rates compared to other emerging markets.

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