الخميس، 20 فبراير 2014

The Egyptian Economic Situation Helicopter view

The biggest problem in Egyptian economic is structural defect any government come do not have to much choose to do because the budget deficit and the government fixed the situation now in Egypt by 2 thing
1-Monetary policy
2-Fiscal policy
Monetary policy   by Central Bank to implement an expansionary monetary policy to reduce interest rate to encourages the investor to invest and Printed currency but this police have side effect because it is increase inflation.

The evolution of printed cash
Fiscal policy by direct investment by the government but the problem is budget deficit the government finance that by gulf support and international bank loan and attract direct investor.

Summary Financial Times report about Egypt
1-Slow recovery of the economy.
(Egyptian government reply 3 billion dollars to Qatar because relationship Worsened sharply after Morsy)
2-Forex reserves raise to 18 billion dollars by gulf support.
3- government started  do  restructuring support (the support will be reduced in stages 9% This will not be easy but it is absolutely imperative prime minister said in financial time magazine)
3-Raise the credit rating.
4-The recovery in the Egyptian Stock Exchange.


The link of Financial Times report


Summery is 
The Egyptian economy is not in its best performance of the kidneys and weak and it is not logical to assume otherwise. 


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