Economy

With the elections over, Egypt’s economy is showing signs of an incipient recovery. After three years of stagnation the IMF anticipates GDP growth will reach 3.5% by 2015, although much of this may be making up for lost time. The new government has outlined an ambitious vision for the future development of the country, and taken the first steps towards solving a structural fiscal deficit. However, Egypt’s economy remains in a fragile state, and the reform that is essential to its long-term recovery is a challenging prospect for any government. The magnitude of this task is readily discernible in the nation’s balance sheet. While a process of fiscal reform had reduced Egypt’s budget deficit to 6.8% by the 2007/08 fiscal year, the political unrest that began in 2011 reversed the contraction, and by 2012/13 the nation was running a deficit of 13.7%. Egypt’s improving political situation, however, has brought with it a new sense of optimism about the economy. The potential for economic recovery over the coming year is real, but much depends on the new government’s ability to cement the putative stability achieved in 2014 and carry out its process of wholesale economic reform.

This chapter contains interviews with Hany Kadry Dimian, Minister of Finance; Anis Aclimandos, Chairman, American Chamber of Commerce in Egypt; Hassan Fahmy, Chairman, General Authority for Investment and Free Zones; and Ahmed Heikal, Chairman and Founder, Qalaa Holdings.