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Egypt's Economic Challenge

(Daily Beast) Mike Giglio - With Egypt's government reluctant to tackle serious reform, and the country's politics gridlocked, analysts say, its economy looks likely to keep fading. "Things are going steadily worse in the economy, and the politics is becoming more polarized," says Mohsin Khan, a senior fellow at the Atlantic Council and former director of the International Monetary Fund's Middle East and Central Asia department. "I really don't see a way out in the near future." "People don't feel that the economic policy of Morsi is different from the economic policy of Mubarak," says Hassan Aly, a professor at Ohio State University who specializes in Middle Eastern economies. "Nothing has changed. It's even getting worse." Egypt's growth has slowed to a crawl, economists say. Rachel Ziemba, the director of emerging markets at Roubini Global Economics, notes that Mubarak's government borrowed heavily to finance stimulus packages during the worldwide economic downturn, leaving Morsi to pick up the tab.
2013-05-03 00:00:00
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