2012年02月07日
economic predicament
Egypt to seek outside assistance in order to cast off economic predicament
As a result of more than a year of continuing unrest in cause to economy a heavy blow, recently the Egyptian government vigorously seeking foreign aid, as soon as possible in order to get rid of the current high fiscal deficit, rising unemployment and slow economic growth dilemma.
Egyptian international cooperation Minister of law IZA Mohamed Abu Na Jia to the media 5, Egypt is currently the international institutions for total $4900000000 loan aid to Egypt to help ease the government fiscal difficulties. Including to the International Monetary Fund for a loan of $3400000000 from the world bank, loan of $1000000000 and to the African Development Bank gets a loan of $500000000.
In fact, the Egyptian government vigorously seeking foreign aid is not" news", because the surrounding these loan negotiations had already started. And the International Monetary Fund to Egypt to provide huge loans are discussed in more than half a year ago, just as the Egyptian government hesitated, has so far failed to implement plan.
The Egyptian government is vigorously seeking foreign aid is mainly because of more than a year of political and social upheaval as one falls cranky on economic damage, leading to economic growth almost stagnant, deficit in highly difficult, rising unemployment and a series of serious difficulties. For example, as an important economic pillar of Egypt tourism revenues to $8800000000 last year, compared with the previous year's $12500000000 were dramatically reduced in 30%. According to the Central Bank Monetary Commission data, last year the Egyptian economy in the first quarter shrink dramatically after 4.3%, the second quarter and third quarter rose respectively 0.4% and 0.3%. Analytic personage thinks generally, from the fourth quarter of the political and social situation, economic growth also won't soon.
A severe economic stall led to the Egyptian government fiscal difficulties growing. According to an estimate by the government, in the year 6 to date by the end of the fiscal year, the Egyptian government budget deficit was 134000000000 Egyptian pounds ($22200000000 ) to gross domestic product ( GDP ) ratio of 8.6%. But many people expected deficit in the proportion of GDP may be high up to 11%. Then foreign exchange reserve sharp decrease. As the tourism income and foreign investment is reduced substantially, by the end of last year the Egyptian foreign exchange reserves have been reduced to $18100000000, and by the end of 2010 36000000000 dollars when compared to decline by half. Although the Egyptian government has repeatedly claimed that foreign exchange reserves are still in the safe range, but many economists expressed deep concern.
The Egyptian government began to seek foreign aid is a big change in position, but also can be said to be a remedy. Last year, given the turmoil on the economic impact is very serious, the International Monetary Fund offered to provide a $about 30000000000 loan to aid Egypt Egypt to help overcome the economic difficulties. But the government has rejected this aid, the reason is the huge loans will increase the burden of debt servicing of Egypt to increasing financial difficulties.
From more than half a year of political and economic situation, the Egyptian unrest and economic blow to the severity of the apparently higher than expected. Some analysts believe that, even if the Egyptian government near future internal energy with the international monetary fund quickly reached a loan agreement, it can play a role in relief will be substantially less than half a year ago, have missed the best time.
Seek foreign aid on Egypt's economic recovery is important, but more important is how to promote economic recovery and growth, political stability and social stability is to promote economic growth in the most basic conditions and foundation. From the current perspective, though Egypt's parliamentary and presidential elections are carried out according to the plan, but from the recent unrest and the deteriorating security situation in the situation, the Egyptian political situation and society to restore normal to still need time, which inevitably leads to the road to recovery is beset with difficulties, the outlook is not optimistic.
As a result of more than a year of continuing unrest in cause to economy a heavy blow, recently the Egyptian government vigorously seeking foreign aid, as soon as possible in order to get rid of the current high fiscal deficit, rising unemployment and slow economic growth dilemma.
Egyptian international cooperation Minister of law IZA Mohamed Abu Na Jia to the media 5, Egypt is currently the international institutions for total $4900000000 loan aid to Egypt to help ease the government fiscal difficulties. Including to the International Monetary Fund for a loan of $3400000000 from the world bank, loan of $1000000000 and to the African Development Bank gets a loan of $500000000.
In fact, the Egyptian government vigorously seeking foreign aid is not" news", because the surrounding these loan negotiations had already started. And the International Monetary Fund to Egypt to provide huge loans are discussed in more than half a year ago, just as the Egyptian government hesitated, has so far failed to implement plan.
The Egyptian government is vigorously seeking foreign aid is mainly because of more than a year of political and social upheaval as one falls cranky on economic damage, leading to economic growth almost stagnant, deficit in highly difficult, rising unemployment and a series of serious difficulties. For example, as an important economic pillar of Egypt tourism revenues to $8800000000 last year, compared with the previous year's $12500000000 were dramatically reduced in 30%. According to the Central Bank Monetary Commission data, last year the Egyptian economy in the first quarter shrink dramatically after 4.3%, the second quarter and third quarter rose respectively 0.4% and 0.3%. Analytic personage thinks generally, from the fourth quarter of the political and social situation, economic growth also won't soon.
A severe economic stall led to the Egyptian government fiscal difficulties growing. According to an estimate by the government, in the year 6 to date by the end of the fiscal year, the Egyptian government budget deficit was 134000000000 Egyptian pounds ($22200000000 ) to gross domestic product ( GDP ) ratio of 8.6%. But many people expected deficit in the proportion of GDP may be high up to 11%. Then foreign exchange reserve sharp decrease. As the tourism income and foreign investment is reduced substantially, by the end of last year the Egyptian foreign exchange reserves have been reduced to $18100000000, and by the end of 2010 36000000000 dollars when compared to decline by half. Although the Egyptian government has repeatedly claimed that foreign exchange reserves are still in the safe range, but many economists expressed deep concern.
The Egyptian government began to seek foreign aid is a big change in position, but also can be said to be a remedy. Last year, given the turmoil on the economic impact is very serious, the International Monetary Fund offered to provide a $about 30000000000 loan to aid Egypt Egypt to help overcome the economic difficulties. But the government has rejected this aid, the reason is the huge loans will increase the burden of debt servicing of Egypt to increasing financial difficulties.
From more than half a year of political and economic situation, the Egyptian unrest and economic blow to the severity of the apparently higher than expected. Some analysts believe that, even if the Egyptian government near future internal energy with the international monetary fund quickly reached a loan agreement, it can play a role in relief will be substantially less than half a year ago, have missed the best time.
Seek foreign aid on Egypt's economic recovery is important, but more important is how to promote economic recovery and growth, political stability and social stability is to promote economic growth in the most basic conditions and foundation. From the current perspective, though Egypt's parliamentary and presidential elections are carried out according to the plan, but from the recent unrest and the deteriorating security situation in the situation, the Egyptian political situation and society to restore normal to still need time, which inevitably leads to the road to recovery is beset with difficulties, the outlook is not optimistic.
Posted by kuama at
13:23
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