A recent Ahram Online article provides the reasons for negative economic growth assessments for Egypt, discussed at the 20th annual Euromoney conference in Cairo:
- Only 6% of companies have a loan or line of credit
- Necessary collateral 33% higher than world average
- 97% of businesses employ less than ten people
- Informal sector represents 30% of economy and 40% of labor
Read the full article for explanations about why these statistics are disheartening. But on top of revolutionary and terrorist issues scaring away both tourism and foreign investment, the national base itself is not easily mobilized for growth. The conference’s opinion is that much internal reform and structural adjustment is necessary.
Jayson Casper 