“Country Risk Service Egypt March 2011” added to ReportBuyer.com

March 22, 2011 - PRLog -- ReportBuyer.com has added a new report http://www.reportbuyer.com/go/EIU03432

Overview

Egypt has entered a period of political instability following the collapse of the regime of Hosni Mubarak. The Supreme Council of the Armed Forces will lead the country to new parliamentary and presidential elections. In the meantime, it has suspended parliament, and constitutional changes allowing wider participation in the next presidential election are planned. The dismissal of the previous cabinet, which led Egypt to economic growth in 2005-08, is likely to result in a shift towards a more populist, expansionary fiscal model with further reforms being put on hold until the political situation is clearer. Disruptions owing to ongoing political uncertainty will result in slower economic growth in 2011-12. Imports, particulary of services, will be affected, resulting in a wider current-account deficit. This will, in turn, add to downward pressures on the Egyptian pound.

Key changes from last month

Political outlook

Egypt is facing a period of prolonged political uncertainty, but the potential for a successful transition to a new regime means a more stable system could emerge.

Economic policy outlook
The interim government will focus on emergency stabilisation of the economy at the expense of further reform and liberalisation. Ongoing legal proceedings against several economically reformist ministers from the previous cabinet may deter future governments from pursuing liberal policies.

Economic forecast
The Economist Intelligence Unit has revised down its growth forecast for 2010/11 to 4.1% owing to the effects of the political crisis. In 2010/11 we expect the budget deficit to widen to 12.1% of GDP as the government increases spending on subsidies and infrastructure projects, and tax and customs receipts fall. Trade revenue, particularly from services exports, will fall significantly. The Egyptian pound will depreciate, adding to inflationary pressures. The economy will begin to recover slowly from  2011/12.

This report covers the following industry codes:
SIC Code: 60
NAICS Code: 52


Country Risk Service Egypt March 2011:  published  is available at:
http://www.reportbuyer.com/countries/africa/egypt/country...

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