Skip to comments.Egypt’s PM says economy ‘worse than anyone can imagine’
Posted on 12/13/2011 2:00:27 PM PST by bayouranger
Egypts new interim prime minister broke into tears in front of journalists on Sunday as he spoke about the state of the countrys economy, saying it was worse than anyone imagines.
Egypts transition in the months since Hosni Mubaraks ouster has been rocky, with protests against the military council leading the process, an increase in crime and the battering of the tourism industry that was once a pillar of the economy.
Kamal el-Ganzouri, the third temporary prime minister since Mubaraks ouster in February, said his priorities were the restoration of security and economic progress.
At one point in his news conference, el-Ganzouri became teary eyed as he recalled seeing an Egyptian man on TV saying I want security, not bread.
He said austerity measures were needed to start reducing the deficit but that no new taxes will be imposed. He did not elaborate on exact steps.
El-Ganzouri said his government will not consider loans from the International Monetary Fund until the outlook of the Egyptian budget becomes clear. In the summer, the IMF offered a $3 billion loan, but Egyptian officials turned it down.
The IMF is projecting Egypts economic growth to be just 1.2 per cent this year, compared with about 5 per cent in 2010.
Solidarity is needed to face the economic crisis and security problem for citizens to be pleased with the revolution, he said.
Urban consumer inflation in Egypt rose to an annual 9.1 per cent in November from 7.1 per cent in October. The unemployment rate in the third quarter climbed to 12 per cent from just under 9 per cent a year earlier. Net international reserves dropped by roughly 40 per cent by the end of October, compared with the end of 2010.
The military council, which stepped in to rule when Mubarak was pushed out, appointed el-Ganzouri and his government at the end of November after a violent crackdown on protesters demanding an end to military rule.
In response to the protests, the previous prime minister, Essam Sharaf, resigned and the head of the military council pledged to transfer power to a civilian administration by July 2012. The council also transferred wide powers to el-Ganzouris government in an attempt to show it had independence and that the military council would leave power though gradually.
El-Ganzouri blamed the last decade of Mubaraks 30-year rule and the corruption that took place then for the ballooning deficit.
El-Ganzouri is himself a Mubarak-era prime minister who served from 1996 to 1999 but he has not been tainted by corruption.
Still, protesters who dislike him for his part in the old regime have been camped in front of el-Ganzouris office in downtown Cairo, forcing him to hold meetings at the Ministry of Planning in a Cairo suburb.
Tourism has to be down close to zero. If the Muslim Brotherhood gains control I would expect tourism to remain close to zero.
hummmm... maybe kill more Christians?
No kidding who would want to go be in the middle of that mess? It probably won’t help when the Muzzies start blowing up the Sphinx and the pyrimids.....
They should ask NASA for a one way ticket to the Moon (god).
What did these idiots expect?
And it’s about to get even worse...
Nice. Nearly carbon-neutral.
What about Egypt's birth rate?
Egypt has a very large population and is unable to grow enough food to feed them. It relies on its multi-billion dollar tourist industry to get enough money to buy food from other countries.
After the stories that have been coming out of Egypt, you’d have to be insane to go there as a tourist. So, unless the Saudis or somebody comes up with the money, they are going to have starvation, theft, murder, and riots.
And I fail to see why we should keep giving them a billion a year, since they are no longer our allies. Maybe Obama and Hildabeast will see things differently, but I’m not sure they’ll be able to persuade even the dolts in congress to come up with that kind of money. Especially since he’s going to want billions for Libya and the rest, too.
Ummm, maybe Lara Logan?
I literally ‘lol’ed at work at Hildabeast haha oops and thank you.
Right. They need heap big bailout from U S of A
How long till the Eqyptian taliban start bulldozing and/or blowing up the pagan pyrimids?
No problem...I’m sure that Uncle BHO will come to the rescue.
How many trillions do they need?
He can even help the tourist trade by issuing an Executive Order (he’s good at that) requiring the Armed Forces to start taking R&R there!!
Don't cry for me, Kamal teeeny
The truth is I never liked you
All through your wild days
Your mad existence
I kept my promise
Now keep your distance
And as for fortune, and as for fame
You invited them in and didn't get them
Though it seemed to the world they were all You desired
I guess that Obama got tired of wrecking the United States economy and wanted to branch out. Nice job Barky!!!
What did they expect?
Puppies and Rainbows???
Did they think Obama money would come falling from the sky?
Or strapped to Unicorns flying in with Obama2012 stickers on their arse?
Not good to have the largest Arab country in turmoil.
Egypt’s birthrate is 25/1000. The US is 13/1000.
Go to the link and look at various countries. The Palestinian replacement rate is 6 per couple vs # per couple in Israel. (2.1 in the US.)
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