Egypt’s Possible New Leader Faces Great Economic Problems
May 20, 2014 by Alvin
Egypty’s likely new president, General Abdel Fatah al-Sisi, will be facing a large number of Egypt’s crusted economic woes. Egypt’s 2.1% economic growth, shows little signs of reviving or improving itself.
According to economic analysts, Egypt’s economy has been bouncing consistently for three years after the fall of Egypt Strogman Hosni Mubarak. Ousted President Mohamed Morsi had also done little to improve the country’s economic situation despite transitioning to democracy.
An energy shortfall had been noted in the country as many businesses and households experience numerous brownouts in a single day. This may cause problems, especially as the heat worsens as summer approaches Egypt.
The new leader of Egypt will have to deal with high unemployment, which had hampered public transportation and healthcare. Tourism, which is a significant part of Egypt’s economy, had shown no signs of improvement as domestic and international investors become wary of the country’s political situation.
Egypt currently has a 14% unemployment, but the number doubles as most young adult Egyptians have no jobs.
General al-Sisi said in a two-part TV interview that he is reluctant to make cuts to food and fuel subsidies, which cost the state around £26 billion yearly. He said despite the urging of the World Bank, the austerity plan will become unpopular and people will not tolerate it.
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