Egyptian economy sound, despite looming recession
Egypt, Economics, 2/5/2002

The Egyptian economy is sound and does not suffer any collapse, cracks or crises, Prime Minister Atef Ebeid said in an interview with the Egyptian television Sunday night.

The rate of growth fell from 6 per cent in 1999 to 5.7 percent in 2000, and this indicates the beginning of recession, he said, adding, however, "this does not represent a sharp slump or crisis".

The state's budget deficit has reached 2.5 per cent but seems set to rise to 3 per cent, Ebeid said, noting that this was due to the fact that the government spending exceeded what had been planned in four consecutive years.

"The challenges currently facing the government are economic slowdown and lack of stability in the exchange and stock markets," the premier said.

Ebeid noted that the economic conditions in all world countries, except the China, and US were unstable and unemployment rates were high even in European countries.

He called on intellectuals and journalists who wrote about the economic conditions in Egypt to refer to international rating agencies and donor's countries before writing any commentary to have a clear picture about the whole situation.

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