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| Wikipedia |
Egypt in 2016, faced a serious economic crisis. The Egyptian pound was underestimated, on the energy sector there were difficulties, the inflation was high and in general the Egyptian state could not preserve itself. For this reason, it called the International Monetary Fund in order to aid it economically. Now, almost three years after this invitation, there are signs that soon enough there will be the end of the "crisis tunnel".
The IMF report on Egypt is positive and optimistic. The Fund approved the payment of the 5th installment of $12 billion, and due to the good performance of the Egyptian economy, it is considering revising the funding programme in terms more favorable to the country.
The GDP is expected to grow by 5.5%; the economy seems to overcome the shock of the political turmoil of the previous period, and president Sisi has made vigorous reforms to attract investment, tackle bankruptcy and more. Also, part of his effective policy is the construction of public works and the proper management of the IMF installments.
The improvement of the economic situation is not only convincing the IMF for a possible revision of the Egyptian program. Finance Minister Mohammed Mait said that in November 2019 his country will not seek further funding from the IMF.
Beyond the confidence of the country's leadership, it seems that the investment climate has been restored to a considerable extent. On Monday, January 28, French President Emmanuel Makron arrived with a delegation in Egypt and numerous agreements were signed to upgrade bilateral economic relations. In January, the French Ambassador to Cairo in an interview with the newspaper Egypt Daily News praised the economic progress that has been made, appeared optimistic about the future and spoke about French direct investment in the country on the occasion of infrastructure which is under construction. Still, the French Ambassador is positive that the number of French tourists in the Egyptian resorts will increase. Finally, he referred to the French economic presence in the country, which is considerable.
All these indicate that Egypt is gradually facing the crisis effectively. With reform policies, political stability and public investments, it has succeeded in improving its position as an investment destination, restoring its credibility as a country and being optimistic towards the future.
