Egypt is in an inflationary spiral.
Its inflation rate of about 6 percent has reached double digits.
Its government has been accused of paying for imports with interest payments to the international banks.
The government has denied any wrongdoing.
But the EIA says the situation is becoming more dire and inflationary.
The central bank has not issued a single new note in five years.
And its inflation rate is projected to reach 8 percent in 2022, according to the World Bank.
The EIA’s inflation forecasts are a key benchmark to gauge whether the country is on the brink of a full-blown economic collapse.
So far, the government has responded by raising its prices of bread, rice and other staple foodstuffs and introducing rationing, which means that some people in Egypt have to pay higher prices to buy food.
Egypt is also facing severe shortages of essential commodities, including electricity, fuel, soap, cleaning products and pharmaceuticals.
The IMF’s Mohamed ElBaradei recently told the United Nations Security Council that the country could not afford to stay on the path of inflation and could “become a basket case” in just five years’ time.
He warned that a sharp rise in inflation would push the country into a deeper recession.
“It will be hard for us to survive in the next five years,” ElBaragei said.
The Egyptian economy is already in a downward spiral.
Egypt has the highest inflation rate in the world, which the IMF has called “dangerous” and “very, very high”.
It has been estimated that inflation could reach 10 percent if the price of basic goods continued to rise, with the price-gouging of food and basic goods such as toilet paper rising to as high as 20 percent.
The inflation rate has reached more than 15 percent in some cities and towns, where inflation is estimated to reach 50 percent.
In some rural areas, inflation has been even higher, with some people paying as much as 60 percent for basic goods, according the World Food Programme.
According to ElBarabedi, Egypt’s current situation is a serious one and it is “not a question of if but when”.
The IMF says the country faces “the most severe challenge of any of the countries that are members of the BRICS group of emerging economies”.
It says the “ongoing crisis” could lead to a collapse of the Egyptian economy.
This is why, ElBarbaradei said, the country must “take immediate steps” to end the crisis.
The international financial institutions have agreed that the government should implement a programme of reforms to ensure a “normal functioning” economy.
However, many in the Egyptian community, including politicians, do not agree with the IMF’s recommendations.
The opposition, led by the Muslim Brotherhood, is also demanding the resignation of the president.
Meanwhile, the Egyptian government has faced intense criticism from the international community.
The International Monetary Fund (IMF) has called the Egyptian regime’s “poor performance” a “disappointing failure”.
In February, the US State Department said that the IMF had “a strong case to continue to fund Egypt’s transition to a sustainable economy”.
In June, the European Union said the government had “not sufficiently addressed its concerns over the economic impact of inflation”.
ElBarabaadei also spoke out against the IMF and called for a boycott of its next two annual meetings.
He said that, if the IMF continues to support Egypt’s economic problems, it would be “a mistake”.