Uprising costs Egypt US$9.79 billion: Geopolicity Report

Egypt’s popular uprising has cost the country, up to September, US$9.79 billion, according to a report issued by consultancy group Geopolicity.

Titled “The cost of the Arab spring & Roadmap for G20/UN support”, the report shows results of a costing exercise undertaken by Geopolicity, based on data from the International Monetary Fund (IMF).

It accounts for the impact of productivity losses on GDP and public finance, but excludes losses to human life, infrastructure damage and business and foreign direct investment losses.

The near 10 billion dollars shed by Egypt are divided among the $4.27 billion cost to GDP and $5.52 billion in lost public finances.

The report estimates that the uprisings that swept through six Arab countries this year have cost the most affected countries more than $55 billion. Egypt comes third after Syria and Libya, which have seen the bloodiest confrontations, lost $27.3 billion and $14.2 billion respectively.

Costing for the Arab uprisings, however, cannot be measured precisely, according to the report as “Many critical economic indicators are unavailable, and the situation is highly fluid.”

The report explains that the benefits of the uprisings remain “intangible” and that they currently contribute to regional destabilisation. It indicates that support programs should engage drivers of change in each country in “region-wide support program conceived and led by Arab states.”

Otherwise, the report concludes, outcome of uprisings will remain unknown and could potentially be regressive.

Despite losses to some countries, the report says that the Arab region as a whole is set to benefit economically from the Arab Spring on back of the rise in oil prices.

The report estimated that overall the year to September saw some $38.9 billion added to regional productivity.

Download the complete report here:
http://www.egypt-business.com/Whitepaper/details/1141-The-Cost-of-the-Arab-Spring-and-Roadmap-for-G20-UN-Support/1820