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An Economic View of Egypt - Research Paper Example

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This paper “An Economic View of Egypt” makes an investigation into the country from the economic and political points of view. The various economic indicators and issues that is of the biggest concern for the country have been thoroughly analyzed…
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An Economic View of Egypt
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An Economic View of Egypt

Download file to see previous pages... The country has a lot of military and political influence over a number of countries in Africa and Middle East. This paper makes an investigation into the country from the economic and political points of view. The various economic indicators have been thoroughly analyzed. Along with that the present issues that is of the biggest concern for the country has also been enumerated. Finally a recommendation has been provided which provides an insight into the prospects and the possible way forward for the country. Research Objective The country of Egypt has gone through various turbulences in the recent times. This has some effect on the economic and political condition of the country and has brought the country under various challenges. The objective of this paper is to find out the various nuances of the economic and the political aspects of the country. The study would provide an insight into impact of the happening in the country as well as find a feasible solution to the host of problems. Literate Review The economic and political aspects of the present day Egypt has been captured in the writings of a number of researchers. The existing political scenario of a particular country has a direct impact on the economy. The well being of a country is largely dependent on the kind of governance that is existent in the country. The major indicator of the development of any economy is the growth rate of the GDP. From the figure below it can be concluded the Egypt experienced a growth rate which have fluctuated over a period of time. The country has faced phases of positive trend in the rate of growth of the economy during the period from 1992 to 1998 and again from 2003 to 2008 as see in the diagram below. However the economy faced a major downturn with the growth rate bottoming out during 2011. The chief reason behind this is the political turbulence that had been taking place in the country due to the removal of Hosni Mubarak from the political control of the government of Egypt. The country recovered from the drastic situation with an extremely slow pace which resulted due to the various social and economic challenges that the newly formed government faced. The national issues had greater significance at that point of time. However, the real GDP showed a positive trend in the growth rate by 2.0 % in the year 2012. The consumption expenditure of the government also increased during this phase which justified the path of recovery of the country. The country has always reported a very high rate of inflation which remained above 10% with the consumer price index always having a double digit figure. After the period of political turbulence, in 2012 as the economy recovered the inflation rate was also brought under control and was reported to be 8.7%. However, the currency of Egypt faced a huge amount of depreciation because of the high rate of depletion in the foreign reserves of the country. This resulted in the weakening of the currency and exchange rate for the country became very vulnerable. The diagram that follows explains the position of foreign exchange of the country. During the year 2012, the foreign exchange reserve of Egypt slowly went down. This resulted in a low level of reserve as low as 13424.1 million US dollars in 2013. ...Download file to see next pagesRead More
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