Ibrahim Saif, Ahmed Ghoneim
{
"authors": [
"Ibrahim Saif"
],
"type": "other",
"centerAffiliationAll": "",
"centers": [
"Carnegie Endowment for International Peace",
"Malcolm H. Kerr Carnegie Middle East Center"
],
"collections": [
"Arab Awakening"
],
"englishNewsletterAll": "",
"nonEnglishNewsletterAll": "",
"primaryCenter": "Malcolm H. Kerr Carnegie Middle East Center",
"programAffiliation": "",
"programs": [],
"projects": [],
"regions": [
"North Africa",
"Egypt",
"North America"
],
"topics": [
"Economy"
]
}Source: Getty
The Global Slowdown and Egypt's Economy
The overall impact of the global downturn on Egypt is that it creates deflationary expectations. As a result, domestic and foreign investors prefer to wait until the dust settles before they make their investment decisions.
The global slowdown has had a negative impact on the inflow of foreign investment, from both the Gulf countries and the broader international market. This has been associated with a decline in worker remittances, which constitutes nearly 10 percent of Egypt’s national economy.
Read more
Exports of goods have declined as a result of a declining global demand and a decline of government support for exporters, including low tax rate and credit lending. The cost of lending, in terms of the borrowing interest rate, has reached nearly 11 percent, which is extremely high especially with the high degree of instability.
All of this has resulted in a tight lending policy at a time when liquidity is most needed, hence complicating the transitional period.
About the Author
Former Senior Associate, Middle East Center
Saif is an economist specializing in the political economy of the Middle East. His research focuses on international trade and structural adjustment programs in developing countries, with emphasis on Jordan and the Middle East.
- The Private Sector in Postrevolution EgyptPaper
- The Economic Agenda of the Islamist PartiesPaper
Ibrahim Saif, Muhammad Abu Rumman
Recent Work
Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.
More Work from Carnegie Endowment for International Peace
- Russia’s Coal Industry Is Running on Borrowed TimeCommentary
Powerful lobbyists and inertia led to Russia’s coal-mining sector missing an excellent opportunity to solve its structural problems.
Alexey Gusev
- The U.S. Export-Import Bank Was Built for a Different Era. Here's How to Fix It.Commentary
Five problems—and solutions—to make it actually work as a tool of great power competition.
Afreen Akhter
- Egypt’s Discrete Role in the Ceasefire with IranCommentary
Cairo’s efforts send a message to the United States and the region that it still has a place at the diplomatic table.
Angie Omar
- Climate Change, Gender, and Inequality in Morocco’s Souss-Massa RegionArticle
For Morocco, integrating gender into climate governance is not simply a matter of social justice. It is a strategic imperative for effective adaptation.
Fadwa Rajouani
- The Myriad Problems With the Iran CeasefireCommentary
Four Middle East experts analyze the region’s reactions and next steps.
- +1
Amr Hamzawy, Andrew Leber, Eric Lob, …