As Egypt works to establish a new form of governing in the wake of the ouster of Mubarak, Egyptian equity markets have behaved skittishly with many investors preferring to sit out the storm. Stocks have decline 47% Since the beginning of January 2011 and the Egyptian market has been the third worst performing overall:
Cronyism and corruption were rampant under Mubarak and there was hope that these drags on the economy would be greatly reduced now that he is gone. However, as many had expected, the Islamists are making a strong move to fill the power vacuum and unfortunately the historical economic track record for Islamic regimes leaves some room to be desired. Despite the challenges, out of the countries in its immediate vicinity Egypt is still projected to have the second highest GDP growth over the next 4 years (second behind Libya and its massive oil reserves).
No comments:
Post a Comment