In the rush to shore up a challenging economy, development focused on infrastructure. Good go, but still donor based….HK
Feb 23 2014
Photo Credit:REUTERS/Asmaa Waguih
Egypt’s fresh stimulus of USD 4.9 billion would provide a short-term push to the economy, but the country’s medium-term challenges remain.
Interim finance minister Ahmed Galal said the country’s second stimulus package since August would be financed primarily by the United Arab Emirates. The government will spend nearly EGP 20 billion (USD 2.87 billion) on development projects, including EGP 2 billion on upgrading the Suez Canal. The rest will be spent on funding social programs, and raising the minimum wage in an effort to ease some of the social pressures in the country.
The stimulus comes on top of a similar EGP 30 billion stimulus package unveiled in August 2013, aimed at upgrading the infrastructure and expanding power supply to more villages.