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Daily News Egypt: The Egyptian Economy in 2016

2016: an opening for Egypt’s economy to recover or an entryway into a dark tunnel? International lending is threatened with the fate of Gulf aid.
20.09.16 | Interesting article at Daily News Egypt

At a time when the government is intensifying its moves to secure US dollar resources to bridge the estimated $30bn financing gap over the next three years, economists believe that 2016 will be a decisive year for Egypt. The government will either begin to achieve a minimum level of sustainable economic recovery, or enter into a dark tunnel if it fails to manage those funds.

Experts fear that the current economic administration may fail to manage the estimated $21bn in loans, or debts, that were agreed upon with a number of international financial institutions. History tells us that Egypt has consumed $29bn in foreign aid since 2011 with the result of no recovery, but rather more and more suffering.

This Daily News Egypt feature will shed light on Egypt’s chronic economic problems and will feature discussions with experts on how to properly employ these loans to learn whether Egypt is able to solve these problems through painful but necessary reforms thus driving the economy out of the dark tunnel.

Economists and specialised investment banks stress that loans will not achieve the targeted recovery and improve the lives of Egyptians, but rather will fix the structural problems in Egypt’s economy and ensure repayment of older external debts to curb the gaping budget deficit. For real change, the business environment must be reformed to attract new investments that can stimulate growth and erode unemployment.