Imf announced that egypt became africas largest economy after nigeria, pushing south africa into third place, as egypt s nominal us dollar gdp expanded by an average of 7. Egypts political, economic situation improved under sisi. The economic consequences of the arab spring by mohsin khan atlantic council rafik hariri center for the middle east the popular uprisings that swept the middle east in early 2011 dramatically altered the political landscape of the region with the overthrow of autocratic regimes in egypt, libya, tunisia, and yemen. Domestic demand and foreign inflows will take a hit in 2020, with growth averaging 2. How the turbulence of the arab spring revolution has led the country to economic ruin. Authorities could take off the financial system to avoid this risk. With fewer tourists and less income from the suez canal due to the stagnating. The changes in economic policy and the partial liberalization of the economy, even though they did improve annual gdp growth, were highly unpopular, particularly because most benefits of this growth were reaped by a small group of businessmen close to the government. This page provides egypt gdp growth rate actual values, historical data, forecast, chart, statistics, economic calendar and news. The government of egypt supported by the world bank group has achieved significant results across all three focus areas under this cpf. Unemployment is on the rise while prices are exploding. 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.
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. The economic development in egypt during the 19522007 period. After the 1952 revolution, president nasser turned egypt into a stateled economy accompanied by the nationalization of industries and the redistribution of agricultural lands, which. Agricultural policies, trade and sustainable development. The egyptian revolution and post socio economic impact doaa s. Pdf the egyptian revolution and post socioeconomic impact. How egypt rebuilt its economy since june 30 revolution. For a chronological summary of the major events which took place after the 20112012 egyptian revolution under president mohamed morsi, see timeline of the 20112012 egyptian revolution post revolution.
The capital city of cairo lies at the apex of the delta in the middle of the scene. The soaring inflation was wearing people down, as was the. This paper is organized around eight sections that circumscribe the economic situation in egypt. Agricultures role in the egyptian economy, 19952014 figure 2. The economic decline of egypt after the 2011 uprising. The economy is under continuous strain because of the turbulent process of political transition. Gdp has declined by almost 4 percent and manufacturing by 12 percent. 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 egyptian economy has transformed itself after the 1952 revolution, from a regulated and social controlled economy in a certain historical context now finding itself into a complex reforming process that has been launched by the massive privatization of the former public enterprises, into a new historical context.
Agricultural policies, trade and sustainable development in egypt march 2017 agriculture isin tellioglu panos konandreas. 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 rate, a high. Economic conditions in egypt prior to 25th of january revolution. Tough living conditions followed the states 2017 reformist economic policies which included a series of decisions, from reducing subsidies on energy to devaluing the local pound. Egypt economy gdp, inflation, cpi and interest rate. The imf had predicted that the egyptian economy would grow by 3 percent in 20, but it has now down graded that figure to 2 percent. The revolution was initially aimed at overthrowing king farouk. Following the egyptian revolution, political and regional developments continued to undermine egypt s economy. Rafik hariri center for the middle east the rafik hariri center for the middle east at the atlantic council studies political transitions. In the 21st century, egypt is modernizing its economy to better serve a growing population. Egypt economy, politics and gdp growth summary the. The economic roots of egypts crisis the washington post. Higher government spending, particularly on investment and public wages, likely underpinned activity.
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. Before and after how did egypt s economy survive before the revolution considering it was a ticking time bomb. The current regime is adopting similar economic policies to those of. 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.
Running to stand still egypts economy thrills investors. W ith hindsight, its clear that the mubarak regimes. Abdou, zeinab zaazou modern sciences and arts university msa, egypt abstract. The egyptian economy has transformed itself after the 1952 revolution, from a regulated and social controlled economy in a certain historical context now finding itself into a complex reforming process that has been launched by the massive privatization of the former public enterprises, into a. As the countrys economy continues to falter, the informal sector features ways to supply and procure necessities for less.
Egypt after the revolution is before the revolution. A year ago, egypt s economy had been crushed by political turmoil. Colonialism the historical context from 1870 a series of great economic changes in advanced capitalist powers second industrial revolution brought a wave of new technologies that radically transformed the economy of the most advanced countries. Revenue from tourism has collapsed, putting pressure on the bal. Andrew wender a graduating essay submitted in partial fulfillment of the requirements, in the honours programme. Before the country became independent, the egyptian economy depended largely on agricultural activities. Still no clear vision mohsin khan and karim mezran are senior fellows at the atlantic councils rafik hariri center for the middle east. Why have energy subsidies, which swallow a fifth of the budget, only become a financial burden now. 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. Prior to the revolution on the 25th of january, the economy in.
A revolution in 2011 and a coup two years later tipped egypt into economic crisis. 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. The post revolution economic strategy has so far only focused on financing an expanding budget deficit and stabilizing the egyptian pound in the face of a growing balance of payment deficiency. The fallout of the arab spring revolution has led egypt to. The economy since the revolution economic performance in egypt has been poor since the revolution began in january 2011. Many factors created discontent with mubaraks regime. The economic development in egypt during the 19522007. Impact of the socio economic situation post the egyptian revolution 2011 countries of the world, inequality is considered as a lead cause for.
The egyptian revolution of 25 january 2011 not only marked a turning point in egypt s political landscape, but also significantly affected the countrys economy and labour market. Raw cotton, exported to europe, formed the largest source of income. 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 economic causes of the egyptian revolution january 25. 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. Five years after the 2011 revolution, egypt s economy is floundering and remains far from recovery.
In the world economic forums rankings of womens economic participation and opportunity, egypt is a hundred and thirtysecond out of a hundred and fortyfour. Caroline freund explains how egypt s alreadyailing economy has deteriorated over the past yeara trend that has underpinned the current unrest. To make further progress, the government must ensure that many more new and better jobs are created each year. An uncertain history of revolution by mariana gallegos dupuis v00799794 supervised by dr. Combining a quantile regression and a difference in difference methodology, we present empirical evidence in support of our hypotheses that the revolution has had an adverse impact on the egyptian economy, on average, but with heterogeneous effects across different sectors. The revolution three things changed after the revolution.
The challenge now is to create a more inclusive strategyone. Euromoney egypt today egypt is definitely going in the right direction and its recovery is noticeable, christian richter, a contributor to euromoney, said friday. As the political climate worsened after the january 25, 2011 revolution, egypt. For the degree of bachelor of arts in the department of history university of victoria april 4, 2017. The arab spring had culminated in a military takeover and the installation of the current president, abdel fattah alsisi. The international economic downturn slowed egypt s gdp growth to 4. With the lack of tourists some sectors make little to nothing. Hafez ghanem examines the economic aspects of egypt s transition and argues that the new economic program must be responsive to the revolution s demands. Egypt s economy five years after the revolution as egypt reflects on political change and social dislocation, how has the economy fared and how does the future look. Running to stand still egypt s economy thrills investors, but locals are struggling. But resources such as oil and natural gas are growing in importance. In the short term, economic policy will focus on mitigating the impact of the coronavirus, with fiscal consolidation suffering, although reforms will be revived later in the forecast period.
Egypt s economic growth has been robust, averaging 5. Egypt still depends on its traditional cotton growing and tourist industries. 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. The economy likely kept steady momentum in the second quarter of fy 2020, which ran from october to december, after slowing marginally in the first. As egypt marks the fifth anniversary of the 2011 revolution on 25 january, it looks back on five years of rapid political change, social dislocation and economic turmoil. There is a general perception that egypt s informal economy has been booming since the january 2011 revolution.
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