Within the context of strong investor confidence, growth was robust and has become more broad-based, creating record numbers of jobs.
The Gulf markets have actually been a source of steady Foreign Direct Investment and portfolio inflow for the Egyptian economy during the past three years.
Inflation returned to single digits, but pressures from strong domestic demand and rising world food prices persist.
The lowest budget deficit was reported in a number of years, triggered by actions to contain fuel subsidies, wage restraint and better cash management. The deficit is yet not seen to come down much further because expenditures have proven to be sticky on the downside.
Despite the buoyant economic conditions, social problems persist. More than 40 percent of Egypt's population lives on less than $2 per day, unemployment officially stands at around 9.0 percent and inequality is high.
Such a situation is a source of worry,especially when considering that 38.5 percent of the population is between 6 and 24 years of age.
Furthermore, uncertainties surrounding Egypt's political transition remain the principal risk facing investors.
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Egypt's economy records a healthy growth
- Egypt: Sunday, February 17 - 2008 at 08:32
Bank Audi issued a new report on the economic performance of the Egyptian economy in 2007, which stated that the Egyptian economy reported another year of impressive performance supported by sustained structural reforms, prudent macro-economic management, reported the Daily Star.
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Amena Bakr, Senior ReporterSunday, February 17 - 2008 at 08:32 UAE local time (GMT+4)
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