A Journey through Time: Determinants of Consumption and Saving Patterns in Egypt
November 2024 2025-06-12 12:36Authors
Nagwa Samak
Heidy Aly
Ahmed Okasha
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A Journey through Time: Determinants of Consumption and Saving Patterns in Egypt
Abstract
| This chapter investigates the dynamics of consumption and savings in Egypt from 1960 to 2022, utilizing an econometric model to analyze macroeconomic determinants alongside household-level data. The macroeconomic analysis reveals that key factors such as real GDP growth, inflation, domestic credit, and exchange rates significantly influence consumption patterns and savings rates. The econometric model highlights a high consumption-to-GDP ratio, which, coupled with persistently low savings, constrains investment and hinders long-term economic growth. On the microeconomic side, the analysis of household income and expenditure data underscores disparities between urban and rural areas, as well as among different income groups and genders. Lower-income households allocate a significant portion of their income to essential goods, leaving limited capacity for savings. The findings stress the necessity for targeted policies to enhance savings, improve income distribution, and bolster economic resilience, particularly for vulnerable populations facing inflationary pressures and economic shocks. |
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