Thursday 14 Mar 2024 @ 09:20
Chatham House
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Why Egypt’s improved economic outlook is mostly down to luck, not skill

EXPERT COMMENT

Egypt’s strategic position in the Middle East, its political importance to the US – and proximity to rich neighbours – has allowed it to secure much-needed financial resources.

When it comes to managing a financial crisis, luck is a valuable commodity – and Egypt has plenty of it. A $35 billion investment from the UAE and a $5 billion increase in a loan from the IMF – amounting in all to 10 per cent of Egypt’s $400 billion GDP – will go a very long way towards clearing the economy’s dollar shortage and eliminating any near-term risk of default.  

The luck that has helped Egypt secure such massive financial resources comes from its proximity to rich neighbours, its strategic position in a fragile part of the world – especially its potential role in stabilizing a post-war Gaza Strip – and its political importance to the US, a status which has allowed Egypt to become the IMF’s second biggest borrower after Argentina.  

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Channel website: https://www.chathamhouse.org/

Original article link: https://www.chathamhouse.org/2024/03/why-egypts-improved-economic-outlook-mostly-down-luck-not-skill

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