Some two years into Egypt’s grass-roots revolution, the country’s economy is in a worrisome downward spiral. A growing number of people, inside and outside of the country, are starting to blame the revolution itself for derailing an economy that was growing, reducing its external-debt burden, and maintaining a comfortable cushion of international reserves.
Blaming the revolution
Archive for Egypt
Inflation in Egypt is expected to climb to 10.9 percent this year, the highest level since 2010, the International Monetary Fund (IMF) said on Tuesday, more than it expected in April.
“Inflation is expected to rise in Egypt, Jordan, Morocco, and Tunisia, reflecting recent and planned subsidy cuts and, in some cases, pressure from monetization of fiscal deficits and supply shortages,” the IMF said in its regional outlook.
The fund expected Egypt’s inflation of 8.2 percent in 2013 in its half-yearly analysis of the world economy published last month.
In 2014, however, price pressures may be a bit lower than previously thought, as the IMF cut the country’s consumer price growth prediction to 11.6 percent from the 13.7 percent seen in April, the report showed.
The IMF did not change economic forecasts for other Middle East and North African oil importers and exporters in its new report, which closely follows the global outlook.
Egypt’s urban consumer inflation accelerated to 8.1 percent in the year to April, fuelled by rising food and energy prices and a struggling pound currency.
It is expected to climb further as the government pushes through tax hikes and subsidy cuts to secure a $4.8 billion loan from the IMF after two years of economic and political upheaval.
Negotiations with the IMF have stumbled repeatedly over government resistance to the austerity measures needed to get the fiscal deficit under control.
The IMF expects Egypt’s budget deficit to widen to 11.3 percent of its gross domestic product (GDP) in the fiscal year, which ends in June, from 10.7 percent in the previous year, but to narrow again to 8.7 percent in the fiscal year 2013-2014.
Egypt’s newly-appointed Investment Minister Yehya Hamed said earlier this month that the shortfall would be 11.5 percent of the GDP in the 2012-2013 year.
Egypt’s army and police stepped up roadblocks in an area of northern Sinai as they tried to track down militant Islamists who kidnapped seven security officers last week, a security source said on Tuesday.
The militants seized the men on a road between the towns of el-Arish and Rafah near the border with Gaza on Thursday, in a challenge to the government’s failing efforts to impose its authority in the lawless Sinai.
The desert region on Egypt’s border with Israel has slipped further into anarchy since president Hosni Mubarak was toppled in 2011.
His successor Mohamed Morsy ordered the security forces almost a year ago to bring the well-armed militant groups to heel following a deadly assault on a border post by Islamist gunmen. The new hostage crisis poses a fresh challenge to his government as it struggles with an economic crisis and political unrest.
Army and police forces set up new roadblocks and reinforced existing ones in a zone running from the northern Sinai town of Sheikh Zuwayed towards al-Jura further south, trying to choke off supplies and reinforcements for the kidnappers, the source said.
Witnesses saw a military aircraft flying over a convoy of armoured personnel carriers in the area.
The state-run Al-Ahram newspaper said the security forces were moving to surround the kidnappers and quoted a military source as saying a military solution would be the last option.
Morsy had said on Monday there would be no talks with “criminals” and vowed not to submit to blackmail.
The kidnappers are demanding the release of jailed Islamists.
The incident has outraged an already disgruntled police force – officers have blocked a land crossing with the Gaza Strip for five days and temporarily closed off a commercial crossing with Israel in protest at the kidnapping.
Armed groups that espouse a more radical brand of Islam than Morsy’s Muslim Brotherhood have exploited a security vacuum in Sinai to launch a series of attacks on Israel and Egyptian security forces.
Cairo’s 1979 peace treaty with Israel limits the number of troops it can deploy in Sinai, but Israel agreed to Egypt’s request to send in more troops as security unraveled there in 2011. Israel has not commented on the new deployment.
The thinly populated desert region has a string of international tourist resorts along its southern Red Sea coast.
Egypt’s army and police stepped up roadblocks in an area of northern Sinai as they tried to track down militant Islamists who kidnapped seven security officers last week, a security source said on Tuesday.
The militants seized the men on a road between the towns of el-Arish and Rafah near the border with Gaza on Thursday, in a challenge to the government’s failing efforts to impose its authority in the lawless Sinai.
The desert region on Egypt’s border with Israel has slipped further into anarchy since president Hosni Mubarak was toppled in 2011.
His successor Mohamed Morsy ordered the security forces almost a year ago to bring the well-armed militant groups to heel following a deadly assault on a border post by Islamist gunmen. The new hostage crisis poses a fresh challenge to his government as it struggles with an economic crisis and political unrest.
Army and police forces set up new roadblocks and reinforced existing ones in a zone running from the northern Sinai town of Sheikh Zuwayed towards al-Jura further south, trying to choke off supplies and reinforcements for the kidnappers, the source said.
Witnesses saw a military aircraft flying over a convoy of armoured personnel carriers in the area.
The state-run Al-Ahram newspaper said the security forces were moving to surround the kidnappers and quoted a military source as saying a military solution would be the last option.
Morsy had said on Monday there would be no talks with “criminals” and vowed not to submit to blackmail.
The kidnappers are demanding the release of jailed Islamists.
The incident has outraged an already disgruntled police force – officers have blocked a land crossing with the Gaza Strip for five days and temporarily closed off a commercial crossing with Israel in protest at the kidnapping.
Armed groups that espouse a more radical brand of Islam than Morsy’s Muslim Brotherhood have exploited a security vacuum in Sinai to launch a series of attacks on Israel and Egyptian security forces.
Cairo’s 1979 peace treaty with Israel limits the number of troops it can deploy in Sinai, but Israel agreed to Egypt’s request to send in more troops as security unraveled there in 2011. Israel has not commented on the new deployment.
The thinly populated desert region has a string of international tourist resorts along its southern Red Sea coast.
Egypt’s army and police stepped up roadblocks in an area of northern Sinai as they tried to track down militant Islamists who kidnapped seven security officers last week, a security source said on Tuesday.
The militants seized the men on a road between the towns of el-Arish and Rafah near the border with Gaza on Thursday, in a challenge to the government’s failing efforts to impose its authority in the lawless Sinai.
The desert region on Egypt’s border with Israel has slipped further into anarchy since president Hosni Mubarak was toppled in 2011.
His successor Mohamed Morsy ordered the security forces almost a year ago to bring the well-armed militant groups to heel following a deadly assault on a border post by Islamist gunmen. The new hostage crisis poses a fresh challenge to his government as it struggles with an economic crisis and political unrest.
Army and police forces set up new roadblocks and reinforced existing ones in a zone running from the northern Sinai town of Sheikh Zuwayed towards al-Jura further south, trying to choke off supplies and reinforcements for the kidnappers, the source said.
Witnesses saw a military aircraft flying over a convoy of armoured personnel carriers in the area.
The state-run Al-Ahram newspaper said the security forces were moving to surround the kidnappers and quoted a military source as saying a military solution would be the last option.
Morsy had said on Monday there would be no talks with “criminals” and vowed not to submit to blackmail.
The kidnappers are demanding the release of jailed Islamists.
The incident has outraged an already disgruntled police force – officers have blocked a land crossing with the Gaza Strip for five days and temporarily closed off a commercial crossing with Israel in protest at the kidnapping.
Armed groups that espouse a more radical brand of Islam than Morsy’s Muslim Brotherhood have exploited a security vacuum in Sinai to launch a series of attacks on Israel and Egyptian security forces.
Cairo’s 1979 peace treaty with Israel limits the number of troops it can deploy in Sinai, but Israel agreed to Egypt’s request to send in more troops as security unraveled there in 2011. Israel has not commented on the new deployment.
The thinly populated desert region has a string of international tourist resorts along its southern Red Sea coast.
On Monday, the Republican Guard started to increase security measures in the area surrounding the Ettehadiya Presidential Palace, in anticipation of mass protests planned by revolutionary groups who oppose President Mohamed Morsy of the Muslim Brotherhood.
The Black Block and Tamarod, or “Rebellion,” movements began calling for the demonstrations last week. They said the protests would be ongoing starting last Friday, when demonstrations were held all over the country against the Muslim Brotherhood and its political wing, the Freedom and Justice Party, until 30 June, at which point they want to hold early presidential elections.
The Tamarod campaign, which was launched this month, is seeking to gather 15 million signatures in support of holding early presidential elections. Media outlets report that the movement has managed to collect over three million signatures. Meanwhile, Islamist groups are questioning the constitutionality of the campaign.
Morsy took office on 30 June last year. Observers claim that since the start of his term, freedom of expression and the press have declined and the economy has deteriorated. Furthermore, liberal and secular forces accuse his party, the Muslim Brotherhood, of manipulating the political arena.
Security sources told Al-Masry Al-Youm that the presidential office has received reports concerning potential clashes on 30 June and the possibility that protesters may storm the presidential palace.
Al-Masry Al-Youm observed the measures being taken at gate 5 of the presidential palace. This included the construction of more crowd control barricades and digging at one of the gates in order to erect a hydraulic barricade.
Sources at the presidential palace told Al-Masry Al-Youm that one construction company was tasked with building two electronic gates in a street leading to the palace.
An official at the construction area, speaking on condition of anonymity, said that the president’s office contacted a company to erect four gates around the palace. Two of them would be in the street leading to gate 5 of the palace.
The official from the construction company added that electric shock devices would be placed under all the gates. He revealed that the president’s office mandated that all construction work be completed before 30 June.
Edited translations from Al-Masry Al-Youm
On Monday, the Republican Guard started to increase security measures in the area surrounding the Ettehadiya Presidential Palace, in anticipation of mass protests planned by revolutionary groups who oppose President Mohamed Morsy of the Muslim Brotherhood.
The Black Block and Tamarod, or “Rebellion,” movements began calling for the demonstrations last week. They said the protests would be ongoing starting last Friday, when demonstrations were held all over the country against the Muslim Brotherhood and its political wing, the Freedom and Justice Party, until 30 June, at which point they want to hold early presidential elections.
The Tamarod campaign, which was launched this month, is seeking to gather 15 million signatures in support of holding early presidential elections. Media outlets report that the movement has managed to collect over three million signatures. Meanwhile, Islamist groups are questioning the constitutionality of the campaign.
Morsy took office on 30 June last year. Observers claim that since the start of his term, freedom of expression and the press have declined and the economy has deteriorated. Furthermore, liberal and secular forces accuse his party, the Muslim Brotherhood, of manipulating the political arena.
Security sources told Al-Masry Al-Youm that the presidential office has received reports concerning potential clashes on 30 June and the possibility that protesters may storm the presidential palace.
Al-Masry Al-Youm observed the measures being taken at gate 5 of the presidential palace. This included the construction of more crowd control barricades and digging at one of the gates in order to erect a hydraulic barricade.
Sources at the presidential palace told Al-Masry Al-Youm that one construction company was tasked with building two electronic gates in a street leading to the palace.
An official at the construction area, speaking on condition of anonymity, said that the president’s office contacted a company to erect four gates around the palace. Two of them would be in the street leading to gate 5 of the palace.
The official from the construction company added that electric shock devices would be placed under all the gates. He revealed that the president’s office mandated that all construction work be completed before 30 June.
Edited translations from Al-Masry Al-Youm
On Monday, the Republican Guard started to increase security measures in the area surrounding the Ettehadiya Presidential Palace, in anticipation of mass protests planned by revolutionary groups who oppose President Mohamed Morsy of the Muslim Brotherhood.
The Black Block and Tamarod, or “Rebellion,” movements began calling for the demonstrations last week. They said the protests would be ongoing starting last Friday, when demonstrations were held all over the country against the Muslim Brotherhood and its political wing, the Freedom and Justice Party, until 30 June, at which point they want to hold early presidential elections.
The Tamarod campaign, which was launched this month, is seeking to gather 15 million signatures in support of holding early presidential elections. Media outlets report that the movement has managed to collect over three million signatures. Meanwhile, Islamist groups are questioning the constitutionality of the campaign.
Morsy took office on 30 June last year. Observers claim that since the start of his term, freedom of expression and the press have declined and the economy has deteriorated. Furthermore, liberal and secular forces accuse his party, the Muslim Brotherhood, of manipulating the political arena.
Security sources told Al-Masry Al-Youm that the presidential office has received reports concerning potential clashes on 30 June and the possibility that protesters may storm the presidential palace.
Al-Masry Al-Youm observed the measures being taken at gate 5 of the presidential palace. This included the construction of more crowd control barricades and digging at one of the gates in order to erect a hydraulic barricade.
Sources at the presidential palace told Al-Masry Al-Youm that one construction company was tasked with building two electronic gates in a street leading to the palace.
An official at the construction area, speaking on condition of anonymity, said that the president’s office contacted a company to erect four gates around the palace. Two of them would be in the street leading to gate 5 of the palace.
The official from the construction company added that electric shock devices would be placed under all the gates. He revealed that the president’s office mandated that all construction work be completed before 30 June.
Edited translations from Al-Masry Al-Youm
An Afghan official says a powerful roadside bomb has killed six policemen in the country’s west.
The officers’ vehicle hit the explosives planted in the road they were driving on Tuesday morning in Herat province.
District Police Chief Sher Agha says the explosion was so strong that the police truck was completely destroyed in the blast in Obey district. He says there were no survivors.
The pol
In less than three weeks, Egypt’s army has found entrances to 23 tunnels to the Gaza Strip, Egyptian military spokesperson Ahmed Ali said on Monday.
The tunnels were located 250-500 meters west of the international border with Gaza, the spokesperson said in a statement posted on Facebook.
The recent discovery of these tunnels comes amid “extensive efforts by border troops to secure the border of the country… and to thwart all plots that aim to destabilize Egyptian society and national security,” according to the statement.
In February, Egypt’s army started to flood all smuggling tunnels to Gaza, which are estimated to number around 1,200. Hamas, which governs the strip, has denounced the move.
The tunnel network has been a lifeline for some 1.7 million Palestinians in Gaza, especially since Israel imposed a severe blockade on the strip in 2007.
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Copyright © 2013 All Rights Reserved