Significance
The figure has been presented by the government as a vindication of its efforts to achieve fiscal sustainability while providing financial safety nets for the most vulnerable groups in society. However, the poverty rate is still higher than in 2015, and the new index was compiled before the full impact of the coronavirus pandemic on the economy had become clear.
Impacts
The economic impact of the pandemic appears to have been relatively light, but this can be attributed partly to statistical anomalies.
The poverty rate fall indicates to the IMF and the World Bank that their programmes will eventually pay off for most Egyptians.
There is uncertainty about the extent of the return of Egyptians from the Gulf and the effect of this on poverty and unemployment.
Designing Financial Safety Nets to Fit Country Circumstances
