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Posts Tagged ‘political transition Economy

A political transition Economy? Only in Egypt?

Despite billions of dollars from Gulf countries, a new minimum wage and efforts by the country’s central bank, Egypt still faces big economic challenges.

Protests and clashes since 2011 have scared off investors and tourists to Egypt.

Tourism was an important source of foreign currency for the country and income for many Egyptians working in the sector. Egypt’s tourism revenue fell by 41% to $5.9 billion in 2013 from $10 billion in 2012Egypt’s tourism hit hard from unrest

WORLD – FEBRUARY 4, 2014

Egypt’s economy stumbling amid political transition

Egyptian media have hailed the military’s role as bringing stability to the country, which could help investment and tourism. Military chief Abdul Fattah Al-Sisi, who is expected to become the next president, may not reform the economy, however, because the military controls a vast economic empire.  Explainer: Egypt’s military
Egypt’s currency traded at 6.96 pounds to the dollar on Feb. 4, a decrease of about 11% from the previous year.
It has declined since the 2011 uprising, before which it traded around 5.8 to the dollar. The Central Bank has held extraordinary auctions to prop up the currency, but a black market persists.
Construction across Cairo and increased access to cheap appliances has pushed up demand for electricity.
Fuel shortages have increased, causing more frequent electricity blackouts. Exploration companies are not developing Egypt’s gas-rich waters, saying the government is not paying them enough.
Copyright 2014 Reuters

COPYRIGHT 2014 REUTERS

Protests and clashes since 2011 have scared off investors and tourists to Egypt. Tourism was important source of foreign currency for the country and income for many Egyptians working in the sector. Egypt's tourism revenue fell by 41% to $5.9 billion in 2013 from $10 billion in 2012.
COPYRIGHT 2014 REUTERS 
Egyptian media have hailed the military's role as bringing stability to the country, which could help investment and tourism. Military chief Abdul Fattah Al-Sisi, who is expected to become the next president, may not reform the economy, however, because the military controls a vast economic empire.
COPYRIGHT 2014 REUTERS
“Nobody can live, in the long term, on aid. It is not sustainable.” SHERIF SAMY, EGYPT’S FINANCIAL SUPERVISORY AUTHORITY

Since the ouster of former president Hosni Mubarak, Egypt has spent about half its foreign reserves, which fell to $17 billion in the end of 2013 from $36 billion in 2010.

Egypt has used billions of loans from Gulf countries on stimulus packages, but analysts warn debts will hinder the economy in the long term

In January the government increased the minimum wage for public sector employees to 1,200 Egyptian pounds per month ($172.41). Many Egyptians say the minimum is not enough, even with additional support from subsidies on essential goods. Strikes by government doctors occurred despite the rise.

“The minimum salary should be 3,000 pounds. If it doesn’t get resolved, we will all take to the streets. If this continues I will suffocate.” SAYED HUSSEIN, PHYSICS TEACHER AND FOOD SELLER

Many people in Egypt supplement their day jobs to make ends meet. A popular refrain during the 2011 uprising was “Bread, freedom and social justice,” and price increases to bread have caused riots in the past.

About one in four Egyptians, or about 20 million people, live on less than $1.65 per day, according to government statistics.

About 30% of children under 5 years old suffered from malnutrition in 2013.

In rural areas the poverty rate reaches as high as 60%.


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September 2020
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