In an attempt to breathe life into Egypt’s crisis-ridden economy, the regime has introduced a series of unpopular austerity measures. Abd al-Fattah al-Sisi is trying to stifle the growing discontent in the country, where two presidents set aside by the people’s protests.
second-Hand-shopping in Cairo. The prices of basic commodities have soared in the crisis-ridden Egypt.
In that long crisis-ridden Egypt, the situation is worse than usual – especially for the economy. The country has struggled to attract foreign investors, and the important tourism industry has been paralysed by the deterioration of the security situation.
” the Situation is extremely serious. The economy has slowed since 2011, but kept afloat with the help of a massive support from the Gulf. But now they have the money stopped coming in and the problems become acute, ” says Amr Adly of the think tank Carnegie Mellanösterncenter, on the phone from Cairo.
Aid from the prosperous so-called gulf countries – oljenationer around the Persian gulf – has made to president al-Sisi able to shoot up the steel baths in several years. But declining oil prices and increased tensions between the former allies have put a stop to the aid and forced Cairo to grab after his last straw.
the International monetary fund (IMF) has approved a storlån on the 12 billion US-dollars – but requires a reform programme in return. This has resulted in a series of tough measures that hit the egyptian population, and a floating exchange rate that I got the egyptian pound to tumble.
the Tightening was postponed for over three years, which has damaged the economy. But it was seen still as politically less costly than to take the unpopular measures. But now there was no other option than to submit to the IMF and its requirements.
the Shortage of foreign currency has hit imports and the prices of goods and services has soared. Subsidies have been eliminated and the fuel price has been increased.
– the Price of everything we import has risen. Transport prices have increased and many other important basic goods have also become more expensive, ” says the teacher Israa, who lives in Cairo.
Of the people boiling anger over how al-Sisi has managed the economy. Last Friday called for protests against the austerity measures, which prompted the security forces to roll out their armored vehicles in the capital and arresting several suspected militants. The large-scale protests failed to materialize, however.
Adly believe that the economic crisis will have any major political consequences. After al-Sisi took power, he has broken all sorts of forms of organized resistance and introduced demonstrationslagar that is so strict that few dare to venture out despite the fact that they are unhappy.
– The type of uncertainty is not available for the moment. This is a regime that is capable of introducing very unpopular measures, since the control over people’s lives with an iron fist. To some degree, the regime’s viability on its ability to restrict all forms of popular protests, ” says Adly.
the Facts: the Political and economic concerns
The egyptian economy has for years been plagued by the unrest in the country, which led to a lack of the united states dollar and a shrinking foreign exchange reserve.
the International monetary fund (IMF) recently approved a storlån to Egypt. The loan of 12 billion dollars, about sek 110 billion, will be paid in installments over the next three years.
Cairo is struggling to meet the counterclaim that the IMF set up, among other things, there have been cutbacks in fuel subsidies, and on november 3 was introduced, suddenly, a floating exchange rate.
It hit hard against many egyptians purses, but can be beneficial for those tourists who still dare to venture there – from to the Swedish krona and the egyptian pound has been pretty equal now suddenly 1: £ 70 for a crown.
The past six years have been both politically and economically turbulent in Egypt, where two presidents have set aside. The egyptian government has avoided implementing economic reforms in recent years, but president Abd al-Fattah al-Sisi has said that it is no longer possible to avoid.
the Discontent with al-Sisi’s government is growing, but the security forces keep a close eye on all of the plans on the popular protests. The president himself has called on people not to demonstrate.
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