Monday 4 November 2013

Guest post: Egypt’s economy, propped up but struggling | beyondbrics

Guest post: Egypt’s economy, propped up but struggling | beyondbrics:

"The Egyptian economy is being propped up by loans, grants, direct deposits and fuel shipments worth billions of dollars from Saudi Arabia, Kuwait and the United Arab Emirates following the toppling of former president Mohamed Morsi and removal from power of the Muslim Brotherhood (MB) in July this year.

Although such aid has allowed Egypt’s authorities to launch ambitious spending on infrastructure to jump start the economy, it also allows them to postpone painful but necessary structural reforms.

Cairo’s investment programme for the fiscal year to June 2014 will help achieve real GDP growth projected at 2 per cent in 2013 and 3.5 per cent in 2014, according to a Bloomberg survey of market economists."

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