Egyptian economy faces major challenges, say economists « ASHARQ AL-AWSAT

Egyptian economy faces major challenges, say economists « ASHARQ AL-AWSAT:



"The Egyptian economy faces three main stumbling blocks on the road to a recovery, according to a number of economic experts who spoke to Asharq Al-Awsat.



The experts agreed the country’s low productivity—particularly the decline in tourism after the 2011 revolution—combined with the ripple effects of the 2008 global financial crisis, insecurity and political instability, are the key issues to be tackled by Egypt’s next government in its efforts to get the economy back on track.



Egypt now faces a 240 billion Egyptian pound (34 billion US dollar) budget deficit, almost 14 percent of gross domestic product (GDP), with government debt reaching 89 percent of GDP, largely stemming from Egypt’s 21 billion dollar subsidies bill in the 2012–2013 financial year.



Economist Sherif Mukhtar said: “Egypt is going through an economic crisis in all sectors, and needs to increase productivity because it is lower than population growth, which results in an increase in the budget deficit and the balance of payments.”"



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