Political Conflict Hurts Egyptian Economy
December 26, 2012
Egypt's President Mohamed Morsi on Wednesday vowed his government will tackle pressing economic problems mainly brought on by nearly two years of political turmoil and social upheaval. Experts say the country faces more tough economic times as the cycle of elections and protests continues.
On many Cairo shopping streets, it's hard to tell there's an economic crisis. At a women's clothing store, however, manager Abdel Aziz Mohammed can see the impact.
“It's normal anywhere that you get affected by the country's circumstances. As long as there is tension in the country, there's not much business. When the situation returns to normal, there will be nothing to worry about,” said Mohammed.
In the last two years, prices of various items are up, and so is unemployment. And with the poverty rate rising from 20% to 25%, businesses are feeling the pinch.
At the same time, foreign investment and tourism are down, and the government's foreign currency reserves have been cut in half.
“The economy is a victim of the political transition," said Political Economics Professor Ashraf Mishrif at London's King's College. "We have seen the economy is actually suffering significantly from the uprising, the protests over the last two years.”
Mishrif, himself an Egyptian, is not surprised that two years of political protests and uncertainty have hurt foreign investment.
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2013-11-27
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2013-11-27