Issue brief the economic decline of egypt after the 2011 prising successive egyptian governments since 2011 have been wrestling with, while simultaneously implementing populist policies to appease the immediate demands of the public. The rate of informal economy activities in egypt reached 35% of gdp in 19972006, according to a world bank study prepared by friedrich schneider et al. As background, we briefly examine the nasser and the sadat regimes. The egyptian revolution carries a challenging transition phase, starting out with problems such as low foreign direct investments fdi, a high budget deficit, a high debt. Prior to the revolution on the 25th of january, the economy in. Growth of gdp over the past five years, however, has been healthy. The roots and causes of the 2011 arab uprisings kamal eldin osman salih abstract. Seven years after the 2011 uprising in egypt, a combination of domestic challenges, together with instability in the middle east and north africaregion has stalled the countrys ongoing transition. Following two quarters of slowdown in growth, economic activity is picking up, driven primarily by the resilient private and to a lesser extent public consump. Most of the country is desert, so about 95% of the population is concentrated in a narrow strip of fertile land along the nile river, which represents only about 5% of egypts land area. The egyptian economy is going through a critical period as the country tran. The egyptian economy has languished in the mostly unfree category for more than two decades. Egypts ailing economy is at the heart of the unrest. Egypts political economy and the downfall of the mubarak regime k.
Running to stand still egypts economy thrills investors. Access the latest politics analysis and economic growth summary through 2011 for egypt from the economist intelligence unit egypt economy, politics and gdp growth summary the economist intelligence unit. But its roots in the countrys recent economic performance and its likely impact on the global economy is not, and so thats the focus of todays top stories. The government of egypt goe successfully implemented a first wave of macroeconomic and structural reforms that successfully addressed a number of deepseated issues and helped to stabilize the economy, sustain growth and lay the groundwork for more dynamic private sector participation in the economy. The economic decline of egypt after the 2011 uprising. The arab spring had culminated in a military takeover and the installation of the current president, abdel fattah alsisi.
Socioeconomic and political condition, domestic and international institutions, 2011 revolution. Latest news and information from the world bank and its development work in egypt. Political uncertainty, macroeconomic instability and global economic turmoil since the 2008 crisis. President hosni mubarak, who led egypt from 1981 to 2011, reestablished ties with other arab countries. Much of egypt s ancient history was a mystery until egyptian hieroglyphs were deciphered with the discovery and help of the rosetta stone. How the egyptian revolution impacts world economy posted on february 1, 2011 by egypt crisis six days of riots have suppressed almost 5% of gdp in egypt, but without tourism the country, the persian gulf countries stock markets are falling and oil prices rose by 4% worldwide reaching the maximum level of the last 28 months. Abdou, zeinab zaazou modern sciences and arts university msa, egypt abstract. Challenges of egypts economic transition carnegie endowment. A year ago, egypt s economy had been crushed by political turmoil. Despite improvement, egypts economy has continued to face many hurdles. Egypt economy gdp, inflation, cpi and interest rate. The remarkable uprising in egypt is beyond wonkbooks purview. The central bank of egypt cbe slashed all interest rates by 1.
Gamal abdel nasser 19541970, anwar sadat 19701981, hosni mubarak 1981 2011, and abdel fattah al sisi 20present. Thi s researc h articl e attempts to scrutinize the nature and cause s of the ara b uprising s which too k people by surpris e globall y throughou t 2011 and int o 2012. The global gender gap report 2011 the world economic forum. Informal economy exceeds 50% of egyptian economy egypt today. Successive egyptian governments have struggled to develop a vision for a new economic model for egypt, while simultaneously implementing populist policies to appease the immediate demand of the public. How the internet is transforming egypts economy boston. Beginning in december 2010, unprecedented mass demonstrations against poverty, corruption, and political repression broke out in several arab countries, challenging the authority of some of the most entrenched regimes in the middle east and north africa. The nile delta of egypt, irrigated by the nile river and its many distributaries, is some of the richest farm land in the world and home to over half of egypt s population. Tawfik pointed out that the integration of small, medium and micro enterprises smes is an urgent necessity to activate the egyptian economy. Gamal abdel nasser 19541970, anwar sadat 19701981, hosni mubarak 19812011, and abdel fattah al sisi 20present. State institutions underpinning both, ranging from the legislative and judicial branches to executive agencies with direct responsibility for economic management require substantial if not total overhauls. The implementation of the finance law in egypt shows that since 2010 2011, the.
Tourism income dropped sharply, as did foreign investments, which decreased almost to zero, compared to usd 8 billion in 2010, according to a statement made by finance minister hazem albeblawi in midoctober 2011. The egyptian economy had steady 7 percent gdp growth between 2005 and 2008 before the global economic crisis, which slowed. The economic development in africa report 2011 is the product of joint work between unctad and unido. It aims to avail information on the performance of the egyptian economy during the reporting period to a broad readership of specialists and nonspecialists. The private sector in postrevolution egypt carnegie. The national currency is the egyptian pound le, gineih in egyptian dialect, from british english guinea, which equals a hundred piasters qirsh, or irsh in egyptian arabic. Recent trends in the egyptian economy in face of the global. Activities increased in most of the sectors, though exports shrunk by 0. This development has attracted growing criticism, above all in the private sector. The struggle against radical islamists characterized his presidency. The economic causes of the egyptian revolution january 25. Recent increases in allowances of the main social programs have helped weather the effects of inflation, but imperfect coverage and targeting leave some groups unprotected.
Apr 25, 2017 challenges faced by the economy of egypt. This paper diagnoses the constraints to growth in egypt at the sectoral level using the 2011. Learn more about the egypt economy, including the population of egypt, gdp, facts, trade, business, inflation and other data and analysis on its economy from the index of economic freedom. Egypt s armed forces cement economic power military business expansion impedes structural reforms jessica noll since toppling president mohamed morsi in july 20, the egyptian military has successively expanded its civil economic activities. The egyptian economy has suffered from a general slowdown since the revolution of january 2011. Overview of the egyptian economy and business environmen. The ancient egyptian economy the economy of pharaonic egypt has been called an ancient command economy, but one should always remember that such modern definitions are not as apt as one would hope for. The space program is elsissis latest attempt to reinvigorate the egyptian economy with a series of megaprojects. This paper suggests a growing significance of the economic motives of social and political change through highlighting the economic dimensions of egypt before 25th january 2011. Even before the revolution in 2011, you had 10 percent unemployment and 25 percent youth unemployment. No claims are made regarding the accuracy of egypt economy 2020 information contained here.
Jan 30, 2018 the imfs threeyear extended fund facility program in egypt will provide an infusion of muchneeded funds to help the country deal with some of its macroeconomic issues. Barack obama said in may 2011, its not america that put people into the streets of tunis or. The egyptian revolution of 2011, also known as the january 25 revolution arabic. Egypts economy light, dark and muddle briefing the. Running to stand still egypts economy thrills investors, but locals are struggling. Prior to the revolution on the 25th of january, the economy in egypt as a whole was performing better than ever. The economy likely lost steam in the third quarter of fy 2020, which ran from january to march, as cases of coronavirus rose both domestically and abroad and the government imposed strict containment measures to control its spread such as nighttime curfews and the closure of airports. He instituted policies to increase exports, particularly of petroleum, and private investment. All suggestions for corrections of any errors about egypt economy 2020 should be addressed to the cia or the source cited on each page. Egypt s economy in 2011 banks in egypt could record a wave of cash withdrawals when they resume their operations, such examples have included companies among the hardest hit violent protests against president hosni mubarak, says bloomberg. The egyptian revolution on january 25, 2011 was a transformative event, both at the political and economic domains, resulting in long lasting and wide implications throughout the arab and the developing worlds. Egypts economy is in big trouble the national interest. Jul 02, 20 egypt s ailing economy is at the heart of the unrest.
Since the 2011 arab spring, egyptians have been facing. The government of egypt supported by the world bank group has achieved significant results across all three focus areas under this cpf. Egypts 2011 revolution sent seismic tremors through the countrys econ omy. Over the past thirty years, the army has insisted on concealing information about its enormous interests in the economy and thereby keeping them out of reach of public transparency and accountability. Leading up to the 2008 international financial crisis and the 2011. A chronology of key events in the history of egypt from 7000 bc to the present day. In the economic decline of egypt after the 2011 uprising, authors. The economic situation in egypt in the context of political. Egypts political economy and the downfall of the mubarak regime. Successive egyptian governments have struggled to develop a vision for a new economic model for egypt, while simultaneously implementing populist policies to appease the immediate demand of. The egyptian revolution and post socioeconomic impact. The government has made clear strides toward regaining confidence in the economy through. The economic causes of the egyptian revolution january 25, 2011.
Nagarajan department of economics laurentian university canada abstract this paper examines the political economy of egypt to explain the downfall of the mubarak regime in 2011. But in the budget for 2011 12its main economic programmeit did nothing. This was largely reflected in the main demands of the protestors to end hosni mubaraks rule, end emergency law, freedom, social justice and human dignity. The shakiness of the economy could undermine progress towards democracy. Egypt is progressing with a well structured program to restore macroeconomic imbalances, address social inclusion priorities, and achieve high, sustainable and welldiversified growth. Doing business 2020 indicators in order of appearance in the document starting a business procedures, time, cost and paidin minimum capital to start a limited liability company. Issue brief decline of egypt after the 2011 uprising. Confronted with pervasive macroeconomic imbalances and microeconomic distortions, the government of egypt goe started in 2016 to move forward with important reforms to stabilize the economy and restore confidence. Five years after the 2011 revolution, egypt s economy is floundering and remains far from recovery. Since the 2011 revolt that toppled former president hosni mubarak, the economy of the arab worlds most populous country has sustained multiple shocks caused by political instability and security issues. The economic situation in egypt in the context of political instability.
Recent developments egypt s economy is estimated to have grown at 4. The egyptian armed forces owns a massive segment of egypts economytwentyfive to forty percent, according to some estimates. In the 1990s, a series of international monetary fund arrangements, coupled with massive external debt relief resulting from egypt s participation in the gulf war coalition, helped egypt improve its macroeconomic performance. Access the latest politics analysis and economic growth summary through 2011 for egypt from the economist intelligence unit egypt economy, politics and gdp growth summary. To the west of the river and near the delta apex one can see the three large pyramids and sphinx. Immediately after the assassination of sadat, a state of emergency was declared which remained in force until 2012. Egypt seeks aid from imf amid virusinflicted downturn. Egypt has grown approximately 40 percent faster than jordan and 30 percent faster than syria though egypt had a far larger. Despite the political uncertainty, egypts economy maintained a growth of 1. Until mid20, no policy approach proved capable of overcoming the causes of the countrys crisis. After the 2011 revolution, the economy of egypt has suffered a severe downturn. The date was set by various youth groups to coincide with the annual egyptian police holiday as a statement against increasing police brutality during the last. Tourism, the lifeblood of the egyptian economy, remains lackluster, clocking in at just a fraction of what it was during the reign of former president hosni mubarak 1981 2011, and lower even. Egypt faces the herculean task of simultaneously rebuilding its polity and economy and doing so in the absence of broad social consensus on either.
The path to a successful economic transition in egypt center for. How the egyptian revolution impacts world economy egypt. Despite the political uncertainty, egypt s economy maintained a growth of 1. The economy of egypt was a highly centralized economy focused on import substitution under president gamal abdel nasser. Maait also said in a statement the countrys budget deficit had fallen below 10 percent for the first time since 2011, but. The economic roots of egypts crisis the washington post. Pdf the egyptian revolution and post socioeconomic impact. Egypt is the most populous country in the arab world and the third most populous country in africa, behind nigeria and ethiopia. This paper investigates the degree of inflation inertia in egypt and its determinants using the cross country data consisting of over 100 countries.
Mediumunbiased estimator of inflation inertia in egypt is high compared to other countries, as indicated by its location around the upper quartile among the sample. Learn how the world bank group is helping countries with covid19 coronavirus. The history of egypt has been long and wealthy, due to the flow of the nile river with its fertile banks and delta, as well as the accomplishments of egypt s native inhabitants and outside influence. The economic situation in egypt in the context of political instability and a risky. Egypt 2018 macro update we expect the real gdp growth rate to accelerate to 4. From floating to thriving taking egypt s exports to new levels english abstract. A revolution in 2011 and a coup two years later tipped egypt into economic crisis. Jun 14, 2016 five years after the 2011 revolution, egypts economy is floundering and remains far from recovery.
The egyptian revolution and post socio economic impact doaa s. Egypts economic transition has been slow and turbulent since the fall of. Egyptian economy, but the business community has not yet responded with new. Egypt economy, politics and gdp growth summary the. Prospects still uncertain despite the political uncertainty, egypt s economy maintained a growth of 1. From floating to thriving taking egypts exports to new levels english abstract. Congressional research service 1 historical background since 1952, when a cabal of egyptian army officers, known as the free officers movement, ousted the britishbacked king, egypt s military has produced four presidents. Authorities could take off the financial system to avoid this risk. United nations department for social and economic affairs. In 2011, the army deposed longtime president hosni mubarak amid the arab spring. Regional disparities continue to be part of the countrys landscape, with upper rural egypt showing poverty rates three times as high as metropolitan egypt.
Arab spring leaves egypt in an economic slump following the revolution that ousted egyptian president hosni mubarak earlier this year, the countrys economy is sagging. Egyptian revolution, it is worth elaborating on the economic, social, and political circumstances of egypt prior to the 25th of january revolution. The expectation gap in the egyptian economy after the january. Domestic demand was the driving engine of growth as it contributed 5. The informal sector represents more than 50 percent of egypt s economy, vice president of the federation of industries tarek tawfik said monday. Economic conditions in egypt prior to 25th of january revolution. It was prepared by a research team consisting of norbert lebale team leader, patrick osakwe unctad, bineswaree bolaky.
Congressional research service 1 historical background since 1952, when a cabal of egyptian army officers, known as the free officers movement, ousted the britishbacked king, egypts military has produced four presidents. The government of egypt goe successfully implemented a first wave of macroeconomic and structural reforms that successfully addressed a number of. Egypt axes interest rates in august as inflation falls to near fouryear low august 22, 2019. Inflation inertia in egypt and its policy implications. Sadats vicepresident, hosni mubarak born 1928, a former air force general, continued on the path that sadat had laid out. Prior to discussing the direct and indirect reasons behind the egyptian revolution, it is worth elaborating on the economic, social, and political circumstances of egypt prior to the 25th of january revolution. Egypt has the largest population in the middle east and north africa, but its economy ranks just fifth, after saudi arabia, the united arab emirates, israel, and algeria. This has been the case since mubaraks removal, which resulted in a serious downturn of egypts economy. Outlook economic growth is expected to reach 6 percent in the medium term, as key economic sectors continue to recover.