Analysis: Egypt economy ‘entered a vicious circle’

Source: Carnegie Endowment
Author(s): Amr Adly

Original Link: http://carnegie-mec.org/2015/12/10/analysis-egypt-economy-entered-vicious-circle-pub-62252

The Egyptian economy has suffered from a general slowdown since the revolution of January 2011.

Political uncertainty, macroeconomic instability and global economic turmoil since the 2008 crisis have all contributed to Egypt’s prolonged recession, soaring unemployment and foreign currency shortages.

Low growth rates led to a sheer drop in state revenue and to an explosion in the budget deficit and public debt.

Foreign currency generating sectors such as tourism and foreign direct investment in the energy and property sectors were hard hit by political and security uncertainty, leading to the consistent dwindling of foreign reserves, which dropped from around $35bn in January 2011, to less than $15bn in December 2012…

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