The previous decade in Egypt was markedby major internal and external shocks that have surely hadsevere implications for the evolution of the population’swelfare. In recent years, social, political, and economicchanges have transformed the landscape of the Egyptiansociety. On January 2011, the revolution started. Led bywide protests and social discontent, the movement ended withthe ousting then president. His toppling was followed by twopresidential elections in two years. Given the structuralconstraints to macroeconomic stability and fiscal pressures,the government engaged in a series of economic reforms toreel in spending and set the country in a sustainable path.It is critical to understand how the welfare of Egyptianhouseholds evolved during this period. Analyzing who wereaffected the most is key to assessing what the futureconditions hold for their welfare and how policies can bebetter designed to protect them. The objectives of thispaper are twofold. The first is to provide a detaileddescription of the methodology that has been applied inEgypt in estimating poverty, including the decisions takento build the consumption-based welfare aggregate. The secondobjective of this note is to understand how the events fromrecent years have affected households’ living conditions.
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