Our domestic savings rate fell to 1.2% of GDP in FY 2024/25 from 6.1%

Egypt’s gross domestic savings rate collapsed to 1.2% of GDP in FY 2024/25 policy brief (pdf)

Nothing left to save

It’s not a lack of financial discipline, but a lack of disposable income.

Inflation has done the work. April’s reading of 14.9%

Abdel Aal makes the same point: each round of price increases in food, energy, and services shrinks the disposable income available for saving.

The behavioral shift is structural.

When prices rise persistently, delaying a purchase becomes riskier than financing it.

The macroeconomic implication is significant.

The macro picture doesn’t match the household picture, and this disconnect explains why positive macro numbers feel detached from the on-the-ground reality. 5.0% in 1Q 2026 fallen to 6.3% in 2025

Why it matters, and what could fix it

Shrinking domestic savings means rising reliance on foreign capital.

Abdel Aal argues the banking sector has acted as a buffer rather than a cause of the savings decline

The INP’s policy prescription is broad CBE’s recent NBFI tightening

Recovery depends on confidence, not rates.