Egypt's Macro Outlook in Focus

The video discusses Egypt's economic vulnerability due to rising food prices, highlighting that 2.5% of GDP is spent on food imports. It explains how Egypt extended its food inventory to mitigate domestic price increases. The transcript also covers expected inflation trends, with a rise in inflation rates anticipated in the second half of 2021, and potential central bank interest rate hikes in 2022. Additionally, it addresses the positive impact of Moody's ratings on Egypt's bond market and the expected inclusion in the JPMorgan index, which could lead to significant inflows into the bond market.

What measure did Egypt take to mitigate the impact of rising food prices?

• Decreased food imports

• Subsidized oil prices

• Increased food grain inventories

• Raised interest rates

What is the expected inflation rate in Egypt for the second half of 2021?

• 7.5%

• 6.9%

• 4.5%

• 5.5%

What is the central bank's expected policy response to inflation in 2022?

• Implement quantitative easing

• Increase interest rates by 100 basis points

• Maintain current interest rates

• Decrease interest rates by 100 basis points

What recent development is expected to positively impact Egypt's bond market?

• Increase in domestic food production

• Introduction of new tax policies

• Decrease in international oil prices

• Joining the JP Morgan index for bonds

How much inflow is the Egyptian government expecting into the bond market in the second half of the year?

• One to two billion U.S. dollars

• Two to three billion U.S. dollars

• Three to four billion U.S. dollars

• Four to five billion U.S. dollars