Egypt's Economy Is in Big Trouble
In August, the International Monetary Fund announced that it had reached agreement with Cairo over a $12 billion package designed to stimulate the economy and increase investor confidence. But this is simply a temporary measure—and one that, if recent history is any indication, will be squandered on showy but ultimately fruitless national projects. Meanwhile, the trends cited above can be expected to continue to frighten off exactly the kind of investment that Egypt needs to turn its economy around.
Which is why the Bloomberg study concludes that “Egypt can once again be a place worth investing in -- but before that happens, a lot will have to change.” What it fails to note, however, is that such change needs to happen very soon. Otherwise, Sisi’s government could well suffer the same fate as its predecessor, and the country could once again descend into chaos.
Ilan Berman is Vice President of the American Foreign Policy Council in Washington, DC.
Image: Baker in Egypt carrying bread past an image of Abdel Fattah el-Sisi. Wikimedia Commons/Mohamed Kamal