Protests, a Destabilizing Factor of Economic Growth in Arab Republic of Egypt

Authors:

Pages: 158-167
DOI: https://doi.org/10.54664/MYHO8686

Abstract:

With the start of the revolution of January 2011 until 2013, many indicators and economic research confirms the entry of the Egyptian economy to a stage of deterioration. With the military council headed by Marshal Tantawi taking over the country, the growth of the economy fell remarkably to less than 2% Unemployment reached over 10%, and the fiscal deficit increased to 8.6% of GDP, which was accompanied by inflation of 11%. That one of the biggest economic mistakes committed by the government system is to keep the exchange rate of the pound fixed, which led to the depletion of about $ 20 billion of cash reserves between December 2010 to May 2012, which has negatively affected the rating of Egyptian Institutions International Finance. After that, Egypt’s economic situation during the rule of Mohammed Morsi and the Muslim Brotherhood, which can be described as lacking in experience in the management of the state. The political challenges and obstacles, as well as the absence of any economic plan, contributed to the increasing complexity of the economic situation of Egypt, Resulting in a rise in the unemployment rate to 12.5%. The Brotherhood’s government failed to provide resources to cope with the crisis, relying only on the collection of aid and subsidies from some regimes in the Middle East, resulting in worsening conditions until the army intervened and President Mohamed Morsi was removed on 3 July 2013. With the arrival of interim President Adli Mansour to power in August 2013, we note that the Egyptian economy witnessed a slight improvement, which was reflected according to the published report that Egypt received about 12 billion dollars in foreign aid from Kuwait, Saudi Arabia and the United Arab Emirates, However, the economic growth rate remained below 2% as unemployment and inflation continued to spread.

Keywords:

Egypt; economic situation; protests; government.

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