Egypt

Tourism Tattler - - BUSINESS & FINANCE -

Egypt con­tin­ues to face eco­nomic chal­lenges, show­ing large ac­count deficits due to a lack of for­eign re­serve and one of the low­est GDP growths in Africa at 2.6% in 2016. The coun­try is cur­rently go­ing through sig­nif­i­cant struc­tural ad­just­ments sup­ported by the IMF that, although pos­i­tive, brought the in­fla­tion rate to very high lev­els (up to 30.1%) last year. The good news is the re­newal of in­ter­est from in­vestors fol­low­ing these ad­just­ments and a new in­vest­ment law is sched­uled in 2017 that should boost for­eign in­flows. In ad­di­tion, Pres­i­dent Trump gave his full sup­port to Pres­i­dent El Sisi dur­ing his visit to the United States in April 2017 which brings new hopes for the Egyp­tian econ­omy.

How­ever, the ter­ror-re­lated in­ci­dents in the coun­try in 2016 has strength­ened se­cu­rity con­cerns. Although the gov­ern­ment has im­ple­mented emer­gency pow­ers, that has proven to be rel­a­tively in­ef­fec­tual. The re­sult was tourists re­mained wary of vis­it­ing the coun­try and tourism did not en­joy a sub­stan­tial re­cov­ery.

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