Egyptian authorities revised its previous GDP fiscal year estimate of 5.0 to 5.5 percent amid renewed infrastructure investments, according to Reuters. The economy grew 4.2 percent in the 2014/15 fiscal year, expanding 2.2 percent since last year, and investments comprised over 14 percent of GDP. Egypt also plans to boost exports by 15 percent for 2016 in wake of Russian sanctions against Turkey.
Sharm el-Sheikh is a well-known holiday destination. On the southern tip of the Sinai Peninsula in Egypt, it is characterised by its year-round hot weather, long white sandy beaches, luxury hotels, and warm blue sea. However, with the recent tragedy of the Metrojet Flight 9268 crash, it is worth examining the importance of Sharm el-Sheikh’s position on the peninsula and within the Egyptian economy, as well, as how it can recover from this terrible event.
Egypt has been in talks with the World Bank in an effort to obtain a $3 billion loan. The North African nation needs the funds to support its budget according to Finance Minister Hany Kadry Dimian.
On Wednesday, the Egyptian government announced that it would receive $3 billion from the World Bank over the coming three years. However, the government later clarified that statement, indicating that the deal was still in negotiations.
Egypt’s New Suez Canal opens on August 6, 2015. The original Suez Canal has been a huge source of income to the nation over the years, and in a time of sagging economic performance, the opening of a new canal may be a crucial boost.
Egypt has found itself caught up in the fight against Islamic State (IS). Following the recent execution of 21 Egyptian Christian hostages by IS in neighbouring Libya on February 15, the Egyptian army sent its air force to attack Islamic State bases there. This marks a significant escalation of Egypt’s involvement in the fight against IS in the region.
Saudi Arabia and Egypt are not the most natural friends. What more, the Saudi government is usually resistant to any form of change or revolution – whether it be internally or across the Arab region. Therefore it came as a surprise when they supported the Egyptian coup in June and went on to provide financial aid. The truth is that Saudi Arabia needs Egypt now as much as Egypt needs Saudi Arabia.
General El-Sisi may have found the solution to Egypt’s economic woes. It is called war.
High among the causes of Egypt’s two popular revolutions of January 2011 and June 2013 was a demand for an honest, efficient and democratic government. However, with only an experience of partial democracy from 1923-52, and during ex-President Morsi’s bad and unpopular regime of 2012-13, true democracy will not come easily to Egypt.
After three years of political and social turmoil, the Egyptian economy can no longer survive without the aid of foreign money. However, the inflow of foreign money has only entrenched the power of the military – who does not care where it gets the money from, as long its own interests are not compromised.
Three years has seen the overturn of two governments, the deaths of thousands of people and the destruction of much of the Egyptian economy. In the end, the mobs have changed nothing, except to make their own lives more miserable.
Egyptian authorities have returned $2 billion that the Qatari government had deposited into its central bank, after two weeks of negotiations failed to bear any fruit on converting the funds into bonds, Reuters reported on Thursday.
Central bank governor Hisham Ramez said that Qatar had initially agreed to convert the sum into three-year bonds, but changed their minds at the last minute.
The worsening economic situation in Egypt over the last few months have led many to blame the 2011 revolution for derailing a seemingly stable economy. Given the right reforms however, Egypt can still restore economic and financial stability; and fulfil the promises set out earlier by the revolution.
