Egypt’s economy isn’t booming. It’s collapsing.
Posted: Fri Jun 07, 2019 8:46 pm
https://foreignpolicy.com/2019/06/07/eg ... i-poverty/
An interesting article contradicting the view that Egypt’s economy is booming. On the contrary, the article maintains the country is heading for bankruptcy with dire consequences for the social underclasses. Some extracts :
“A grand deception lies at the heart of Egypt’s miraculous economic recovery, and its architects are the government of General-turned-President Abdel Fattah al-Sisi and the International Monetary Fund.“
“The mismanagement of public finances and overall negligence has caused external debt to rise nearly fivefold, due to depreciation of the Egyptian pound, in the past five years and public debt to more than double—and this is expected to continue for the foreseeable future.”
“The government currently allocates 38 percent of its entire budget merely to pay off the interest on its outstanding debt. Add loans and installments, and more than 58 percent is eaten up.
Meanwhile, the International Monetary Fund has a lot to answer for. The IMF has manipulated the structure of the Egyptian economy; it posts growth rates for Egypt, but these are exaggerated by levels of debt in the same way that one might exaggerate their income by borrowing beyond their means.”
An interesting article contradicting the view that Egypt’s economy is booming. On the contrary, the article maintains the country is heading for bankruptcy with dire consequences for the social underclasses. Some extracts :
“A grand deception lies at the heart of Egypt’s miraculous economic recovery, and its architects are the government of General-turned-President Abdel Fattah al-Sisi and the International Monetary Fund.“
“The mismanagement of public finances and overall negligence has caused external debt to rise nearly fivefold, due to depreciation of the Egyptian pound, in the past five years and public debt to more than double—and this is expected to continue for the foreseeable future.”
“The government currently allocates 38 percent of its entire budget merely to pay off the interest on its outstanding debt. Add loans and installments, and more than 58 percent is eaten up.
Meanwhile, the International Monetary Fund has a lot to answer for. The IMF has manipulated the structure of the Egyptian economy; it posts growth rates for Egypt, but these are exaggerated by levels of debt in the same way that one might exaggerate their income by borrowing beyond their means.”
