Egypt Economic Monitoring Note, Fall 2012

Egypt is in a precarious economic situation reflecting a difficult external environment, political uncertainty, and weak economic policies. International reserves have been declining rapidly to a low level, driven by a sizeable current account deficit and large capital outflows. Large spending increases are driving up the fiscal deficit to unsustainable levels, with high real interest rates and weak growth adding to the mounting debt burden. And weak growth is fueling social pressures. Strong financial support from Arab bilateral donors has been holding the country afloat so far, but the leaking cannot continue much longer and the authorities have been forced to seek support from the International Monetary Fund (IMF) and other donors. Egypt is in a precarious economic situation reflecting a difficult external environment, political uncertainty, and weak economic policies. International reserves have been declining rapidly to a low level, driven by a sizeable current account deficit and large capital outflows. Large spending increases are driving up the fiscal deficit to unsustainable levels, with high real interest rates and weak growth adding to the mounting debt burden. And weak growth is fueling social pressures. Strong financial support from Arab bilateral donors has been holding the country afloat so far, but the leaking cannot continue much longer and the authorities have been forced to seek support from the IMF and other donors.

Bibliographic Details

Main Authors:	Laursen, Thomas, Badr, Karim, Zaki, Chahir
Format:	Report biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2012-09
Subjects:	ACCOUNTING, ASSET RATIO, BALANCE OF PAYMENTS, BANK CREDIT, BANK LIQUIDITY, BANKING SYSTEM, BILL, BONDS, BORROWING COSTS, BUDGET DEFICIT, BUDGET DEFICITS, CAPITAL ACCOUNT, CAPITAL FLOWS, CAPITAL INFLOWS, CAPITAL OUTFLOWS, CAPITAL TO ASSET RATIO, CASH DEFICIT, CDS, CENTRAL BANK, CLARITY, COMPETITIVENESS, CONSOLIDATION, CORE INFLATION, CORRUPTION, COURT RULINGS, CREDIT EXPANSION, CREDIT GROWTH, CURRENCY, CURRENT ACCOUNT, CURRENT ACCOUNT BALANCE, CURRENT ACCOUNT DEFICIT, DEBT, DEBT BURDEN, DEBT RELIEF, DEBT SERVICE, DEPOSIT, DEPOSIT INTEREST, DEPOSIT INTEREST RATE, DEPOSITOR, DEPOSITS, DEPRECIATION, DIRECT INVESTMENT, DISBURSEMENTS, DISCOUNT RATE, DIVIDEND, DOMESTIC BORROWING, DOMESTIC DEBT, DOMESTIC DEMAND, DOMESTIC MARKET, ECONOMIC ACTIVITIES, ECONOMIC ACTIVITY, ECONOMIC OPPORTUNITIES, ECONOMIC POLICIES, ECONOMIC SITUATION, ENROLLMENT, EXCHANGE RATE, EXPENDITURE, EXPENDITURES, EXPORT CAPACITY, EXPOSURE, EXTERNAL BALANCE, EXTERNAL DEBT, EXTERNAL FINANCING, EXTERNAL POSITION, FINANCIAL ASSETS, FINANCIAL MARKETS, FINANCIAL SUPPORT, FINANCIAL SYSTEM, FINANCING NEEDS, FISCAL BALANCE, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL OPERATIONS, FISCAL POLICIES, FOOD PRICES, FOREIGN ASSETS, FOREIGN FINANCING, FOREIGN INDEBTEDNESS, FOREIGN INVESTORS, FOREIGN RESERVES, GOLD, GOVERNANCE INDICATORS, GOVERNMENT DEBT, GOVERNMENT FINANCE, GOVERNMENT FINANCING, GOVERNMENT POLICIES, GOVERNMENT SECURITIES, GROWTH RATES, HIGH INFLATION, HOLDING, ID, IMBALANCES, IMMUNIZATION, IMPORT, IMPORTS, INCOME, INCOMES, INFLATION, INFLATIONARY PRESSURES, INFRASTRUCTURE INVESTMENT, INTEREST PAYMENTS, INTEREST RATE, INTEREST SUBSIDIES, INTERNATIONAL RESERVES, INTERNATIONAL STANDARDS, INVESTMENT SPENDING, LABOR FORCE, LABOR MARKET, LEGAL FRAMEWORK, LENDING INTEREST RATE, LENDING POLICY, LIBERALIZATION, LIFE EXPECTANCY, LIQUIDITY CONDITIONS, LOAN, LOAN QUALITY, LOCAL BANKS, LOCAL GOVERNMENT, MARKET PRICE, MATURITIES, MORTALITY RATE, NEGOTIATIONS, NOMINAL ANCHOR, NON-PERFORMING LOANS, OIL EXPORTS, OUTPUT, OUTPUT GAP, OVERDRAFT, OVERDRAFTS, PENSIONS, POLITICAL INSTABILITY, POLITICAL STABILITY, POLITICAL UNCERTAINTY, POWER OUTAGES, PREPAYMENTS, PRICE HIKES, PRIVATE SECTOR CREDIT, PUBLIC DEBT, PUBLIC EXPENDITURE, PUBLIC FINANCE, PUBLIC FINANCES, RAPID CREDIT EXPANSION, REAL APPRECIATION, REAL EXCHANGE RATE, REAL EXCHANGE RATE OVERVALUATION, REAL INTEREST, REAL INTEREST RATES, RECEIPTS, REFERENDUM, REMITTANCES, REPAYMENTS, RESERVE, RESERVE REQUIREMENT, RESERVES, RETURN, RETURNS, RISK PERCEPTIONS, RULE OF LAW, SAFETY NETS, SALARIES, SAVINGS, SHORT-TERM CAPITAL, SOCIAL PROTECTION, SOCIAL SAFETY NETS, STRUCTURAL REFORMS, SUPPLY SHOCKS, SURPLUS, T-BILLS, TAX, TAX RATE, TAX RATES, TAX REVENUE, TAX REVENUES, TECHNICAL ASSISTANCE, TOTAL EXPORTS, TOTAL EXTERNAL DEBT, TRADE BALANCE, TRADE DEFICIT, TRADING, TRADING PARTNER, UNEMPLOYMENT, UNEMPLOYMENT RATE, URBAN AREAS, WAGES, WITHDRAWAL,
Online Access:	http://documents.worldbank.org/curated/en/315791468234531470/Egypt-economic-monitoring-note-Fall-2012 http://hdl.handle.net/10986/27101
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