The Economist Intelligence Unit recently predicted that Egypt’s economic future seemed promising, with the nation’s GDP rising to 5.4 percent by 2005, from the current 3.2 percent.
In addition, the nation’s liquidity problems are expected to lessen in the near future as the Egyptian pound is devaluated accordingly. Recently, Egypt’s Central Bank devaluated the Egyptian pound to EP 4.04 from last year’s EP 3.47 to the dollar. The Economist predictions maintain that the exchange rate will reach 4.95 by 2005.
Furthermore, dropping oil prices coupled with rising import expenses are expected to push up the nation’s account deficit, which currently stands at one percent of the GDP. This deficit is expected to grow to 3.8 percent in 2003, and to 3.6 percent by 2005.
However, devaluation is also expected to play a role in reducing this deficit, which, according to the economist, authorities should be able to do with ease. –(Mena Report)
© 2001 Mena Report (www.menareport.com)
