Political Stability, Austerity Measures, External Imbalance and Debt Impact on the Egyptian Economy

Economic difficulties manifested by the low GDP per Capita, high unemployment, high rates of inflation, limited sources of foreign currency, mounting internal and external debts, and high subsidies, had been facing Egypt for a long time. Despite the higher growth rates in Egypt in the first decade of the millennium, the persisting economic difficulties and political instability problems led to 2011 uprise. Against expectations, the political instability, security issues and unrest, which followed the uprise, and the world economic difficulties led to further deepening of the economic problems of Egypt due to the reduction in the limited sources of foreign currency and fragile economic structure. Egypt dependence on income from remittances, the Suez Canal and tourism as the main sources of foreign currency are inadequate. Egypt should diversify its economic activities by further engagements in the services sector, direct more effort to technological advances and increase the added-value to its products by empowering the large youth and educated population