Egypt economy precarious

The Egypt government released a report today, forecasting a positive economic outlook.

Total deposits in banking system, (excluding the Central Bank of Egypt), were 989.4 bn Egyptian Pounds

This, was in December 2011, increasing by about 3.9% compared with its level during the same month of the previous year.

Additionally, total domestic liquidity reached 1038.9 bn Egyptian pounds during December 2011, attaining a rise of around 6.7% compared with its level during the same month of the previous year.

Net international reserves reached US$ 15.7 bn. at the end of February 2012, achieving a decrease by nearly 52.9% compared with its level during the same month of the previous year.

Revenue from the Suez Canal were at US$ 381.4 million during February 2012, recording an decrease by about 1.9% compared with their level during the same month of the previous year.

Inflation has climbed to 9.2 percent in Feb 2012, gaining 1.6 percent against Feb 2011.

“These figures were anticipated in advance, as there a lot of elements, which will make the status of Egyptian economy even worse in coming months, lots of work strike, and other political conflicts resulted in these horrible figures” an economic specialist told Bikyamaser.com.

Ahmed Monzer, a macro-economic specialist in an investing company, sees the coming presidential election as a possible absolute solution to the problems stifling the Egyptian economy.