Egypt economic losses on the rise
Economists are trying to estimate the economic losses incurred by Egypt during the period of protests and political turmoil. There are some estimates that these losses are in the range of 55 to 100 billion pounds.
A report by the Information Center said that these losses are multiplied, especially with the closure of several vital sectors, including tourism and financial services, asserting that the biggest challenge currently is to restore confidence in the Egyptian economy.
Samir Radwan, the new finance minister has said in previous statements that the country suffered huge economic losses during the political protests but noted the government is committed to meeting its financial obligations. "The losses will be huge," he said, adding: "It is premature to accurately estimate the size of these losses."
Warlier this week, Credit Agricole Bank in Egypt, projected the economic growth will drop to 3.7% in 2001 from 5.3%, after the Egyptian economy suffered a major blow with the departure of some one million tourists from the country.
The Organization for Economic Cooperation and Development said losses amounted to about $ 90 million after the suspension of the internet services during the first five days of the riots. This is expected to have a greater impact on the Egyptian economy over the long term.
Other reports indicate the loss of the transport sector at 15 million pounds per day as a result of the events in Egypt. The daily losses to the Metro is put at 1 million pounds, the loss of the Egyptian railway amounts to 4 million pounds per day, and the losses of Egyptian ports hit 10 million pounds per day.
On his part, Dr. Fakhry Fiki, a professor of economics at Cairo University and a former Executive Director at the International Monetary Fund explained that there are two types of costs for the economy - the first includes the prices of real assets, buildings and real estate as well as financial assets, stocks and bonds, which will return to normal as soon as things back to normalcy. The second type includes losses which can not be compensated as they were incurred during the period of protests, which caused the significant interruption of economic activity.
Fiki pointed out that Egypt has suffered huge economic losses as well as paralysis in the production sector, distribution of goods and services. According to him, the total economic losses incurred by Egypt range from 55 to 60 billion poundsm but this figure is likely to rise to nearly 100 billion pounds in the event of continuing political tensions.