Economy

Egypt is the second-largest economy in the Arab World, with a GDP in excess of $229bn and a domestic market of 85m people. However, its performance over the past year has been turbulent, thanks to the significant political transformation the country has undergone. The complicated process has had broad macroeconomic consequences for Egypt, reducing capital inflows by roughly 75% in 2011 and slowing GDP growth to less than one-third of what was originally forecast for the 2010/11 fiscal year. During the same period, the government deficit grew to 9.8% and foreign reserves declined, even as spending pressure increased. However, the long-term fundamentals of the country’s diversified economy remain strong and some segments posted remarkably robust figures. This chapter features interviews with Osama Saleh, Minister of Investment; Gamal Moharam, President, American Chamber of Commerce in Egypt; John Rice, Vice-Chairman, General Electric; Hassan Malek, Chairman, Egyptian Business Development Association; Mohamed El Erian, CEO, Pacific Investment Management Company; and Hisham El Khazindar, Managing Director and Co-founder, Citadel Capital.