Economics
Inflation Gap a Reminder to Nigeria That Egypt Got It Right
- Egypt’s economy is expanding at double the rate of Nigeria’s
- The Arab nation’s inflation rate has fallen back below 10%
A pedestrian stands by a currency exchange bureau in Cairo.
Photographer: Sima Diab/BloombergThis article is for subscribers only.
One of the clearest signs that Egypt is starting to reap the economic benefits of a currency float almost three years ago came last week. Nigeria, which took a different path when faced with similar problems, is still struggling.
Inflation in Egypt, Africa’s third-biggest economy, slowed to single digits for the first time since the pound was floated in late 2016. It had rocketed as high as 33% soon after. President Abdel-Fattah El-Sisi’s administration said a devaluation was needed to ease severe shortages of foreign exchange and get a $12 billion loan from the International Monetary Fund.