The Economic Situation: Is Egypt Facing the Danger of Bankruptcy?

EPC | 01 Feb 2013

The Economic Situation: Is Egypt Facing the Danger of Bankruptcy?

The analysis deals with indicators of the worsening economic situation in Egypt, such as the reduction of the credit rating, some European banks offering its branches for sale, the Central Bank warning on Dec. 29, 2012 about the decline of foreign currency reserves, the decline of revenue in the tourism sector, a decline of the foreign exchange rate and the increase of inflation rate. The analysis concludes that it is unlikely that Egypt will face bankruptcy, but the delay in finding solutions for the social, political and security crises will worsen the economic crisis, which in turn, might expose the economy to the danger of collapse.

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