Middle East economists and analysts have tried and often failed to answer Egypt’s million dollar question: Will the country’s economy collapse and, if so, when?
Finally, someone has crunched the numbers to give us an answer.
London-based economist Ziad Daoud pored over Central Bank data and reckons the scare-mongering (of which the media is to blame of course…) of Egypt’s imminent economic collapse is largely unwarranted.
Egypt needs to raise $11.7 billion in the next 12 months, according to International Monetary Fund estimates.
The task seems “formidable,” Daoud writes in his blog post, “especially without the help of the central bank’s foreign currency reserves which are near their minimum safety level.”
But a careful look at the numbers goes a long way to explaining how Egypt has muddled along for so long and why the situation is not so bad. Daoud writes:
According to the Central Bank of Egypt (CBE), of…
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