CAIRO: Economy expert Mostafa el-Nasharty predicted Monday that the current government would not be able to handle Egypt’s current economic crisis.
Nasharty attributed his predictions to the budget deficit that has increased to 14 percent of the gross domestic product (GDP) and the consumption of 30 percent of cost revenues. He also said that the former government, headed by Hazem al-Beblawy, adopted poor policies, such as accepting aid loans from Arab Gulf countries, which contributed to Egypt’s debt.
The lack of investment, inconsistent investment projects and the trend of foreign investors to only invest in petroleum and real estate sectors will create obstacles for the new government, said Nasharty.
Nasharty also expects the government will fail due to the lack of economic development plans to exploit metallurgical wealth, such as the white sand and petrochemical industries. Nasharty also said the former government failed to establish new industrial regions, a free trade zone and to apply minimum wage rates.
If the current government fails to handle the Grand Ethiopian Renaissance Dam crisis, Egypt will witness a devastating water crisis and farmers will not be able to plant on more than 2 million acres of Egypt’s land, he added.
Originally published in Youm7.