# Egyptian economy



## MaidenScotland (Jun 6, 2009)

Fatma is a street vegetable seller. She has six children and says some days she struggles to feed them let alone think about their education.

"The prices, the prices, everything is very expensive. You can buy 500 or 600 pounds worth of vegetables and it’s a tiny amount. We don’t make a profit anymore” she told us.

One-third of Egypt’s budget is spent on subsidies, mainly food like bread and sugar. These subsidies are not targeted, which makes them a huge drain on the economy.

The government has recently said it will cut some energy subsidies. The problem is enforcing these measures.

As Hani Sabra, an analyst at the Eurasia group puts it, "In a sensitive political atmosphere as we have today, doing something as drastic as reducing energy or food subsidies would be political suicide, and new governments, to have credibility with the public, like to hand out goodies. [They] don’t like to take things away."

Foreign reserves dropped 50 per cent last year (from $40bn). There is barely enough to cover the next three months of imports, according to experts, which could lead to food shortages. 

"I think the problem is last few months you've had reserves drying up because the government wants to defend the pound,” Sabra explained. 

"They don’t want it to devalue and there is pressure on the government to devalue. The problem is they are very restricted in their ability to do that because if you go back to January 25, what were people saying"

"They were saying 'Ash, horreya, adela' ["bread, freedom, social justice"] If you have a government that decides to devalue the currency and the cost of basic food price rise, then you will have a politically unstable situation arise again."

High unemployment

Inflation is rising monthly (10.4 per cent in December) and the Egyptian Exchange’s benchmark stock index closed out the year over 45 per cent down from its level at the start of 2011. 

Meanwhile, one of the main sources of income – tourism – is declining.

The political turmoil affects the economy and vice versa. Unemployment is at its highest rate in ten years. 

It was young, disenfranchised men who were on the front lines fighting the police in November on Mohamed Mahmoud Street and battling the military in December on Kasr El Ainey.

These protests were political, but it would be a mistake to ignore the economic factors and how they are fuelling frustration.

Also, much of the aid promised by foreign donors, according to the prime minister, has yet to arrive.

There are talks with the International Monetary Fund for a $3bn loan. So far, the Supreme Council of Armed Forces (SCAF) have resisted the idea of taking the loan, arguing Egypt can go it along.

Decision time

Analysts say it is more likely that the SCAF doesn’t want to take any hard economic decisions.

And that’s the main problem: the SCAF feels, given the charged atmosphere, they can’t afford to make a drastic economic move. 

It is fast becoming clear that they can’t afford not to. There is a complete lack of any creative solutions to deal with the country’s economic problems.

With no vision or plan being presented by either the SCAF or the other political forces, including the Islamists and the Liberals, it is difficult to see how Egyptians, much less foreigners, will have the confidence to invest in the new Egypt so the situation can improve.

Last January this revolution, at heart, was about reclaiming Egyptian pride and human dignity.

A year on, parents still can’t put food on the table for their children and the children have no prospects of finding a job.

Just like there is no quick fix for the political situation, we can’t expect a quick fix for the economy.

Even so, it is time for the political forces in this country to start showing some leadership and make some tough economic decisions desperately needed.


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## MaidenScotland (Jun 6, 2009)

I have noticed that prices seem to be rising daily and that I am now back to getting a sweet as change. 

The government has recently said it will cut some energy subsidies which is a good thing but of course it will hit the people who need it most but the rich man who has had his aircon/heating, computers, fancy electric ovens, lamps running has benefited far more than the man who really needs it.


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## DeadGuy (Jan 22, 2010)

Few days back a friend of mine needed to change the oil for his car, so we got the oil and needed to find a "workshop" that would do the job, found one, the owner is in his 20's/30's, but the one who actually did the job was a TINY kid wearing nothing on his freezing oily feet but slippers, there's no way he could be older than 10 years old 

I don't really care about exchange rates or inflation numbers, those people are the ones that apparently never gonna get anything from anyone no matter how good or bad the economy's doing


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## Sonrisa (Sep 2, 2010)

The weather has been very cold in november and december which means there seems to be a shortage of fruit and vegetables this year, and they are much more expensive than other winters. THis iss the time when markets should be having a rich variety of cheap but delicious local produce, but that's not the case this year. Even the strawberries are no good, they are artificially red in the outside but unripe and white in the inside. 

As I said before, whoever wins the elections, the political situation will keep deteriorating for as long as people can't afford to feed their families.


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## MaidenScotland (Jun 6, 2009)

DeadGuy said:


> Few days back a friend of mine needed to change the oil for his car, so we got the oil and needed to find a "workshop" that would do the job, found one, the owner is in his 20's/30's, but the one who actually did the job was a TINY kid wearing nothing on his freezing oily feet but slippers, there's no way he could be older than 10 years old
> 
> I don't really care about exchange rates or inflation numbers, those people are the ones that apparently never gonna get anything from anyone no matter how good or bad the economy's doing




It's appalling the child labour in this country. I am sure I told you when we had a new kitchen installed a young boy was sent and I saw him being punched in the stomach.. I phoned the engineer and told him to take the boy away as I was not paying thousand of us dollars for a young boy to do the job and be abused.
Then the guilt trips starts.. what if his family need the few pounds he would have been paid?
I have those small garages beside me and there is one of them who must have a Downs Syndrome boy who is wheeled out when the Gulf Arabs are about, this boy is put into womens high heeled shoes and he approaches the Arabs with a hand written note in various languages asking for money, what the note says I have no idea and I hate to think.


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## MaidenScotland (Jun 6, 2009)

Sonrisa said:


> The weather has been very cold in november and december which means there seems to be a shortage of fruit and vegetables this year, and they are much more expensive than other winters. THis iss the time when markets should be having a rich variety of cheap but delicious local produce, but that's not the case this year. Even the strawberries are no good, they are artificially red in the outside but unripe and white in the inside.
> 
> As I said before, whoever wins the elections, the political situation will keep deteriorating for as long as people can't afford to feed their families.




It is strange you have brought strawberries up.. I never buy them here but only last week I did simply because you keep telling me how good they are and I wondered what the heck is there to like when I bit into one. I put them on the window ledge for the birds ,, well pigeon to peck and they have left them alone. Strange thing is they have not rotted or ripened.


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## DeadGuy (Jan 22, 2010)

Sonrisa said:


> The weather has been very cold in november and december which means there seems to be a shortage of fruit and vegetables this year, and they are much more expensive than other winters. THis iss the time when markets should be having a rich variety of cheap but delicious local produce, but that's not the case this year. Even the strawberries are no good, they are artificially red in the outside but unripe and white in the inside.
> 
> As I said before, whoever wins the elections, the political situation will keep deteriorating for as long as people can't afford to feed their families.


Fuel shortage of all sorts, gas shortage, Hell even water shortage in some areas!

Gas cylinders are like drugs now, if you could find it, you have to pay like 10 times more for it, and of course the Professor selling it will need extra money to take it up stairs if he agrees to anyway! With more money of course! And if not, you either have to do it yourself, or wait for another professor that will do it!

Fruits and veggies, all the fruits that did not match the EU quality specifications were sent back to the local market, you'd think they'd sell it cheaply after that, but no, you get sh!t tasteless food for double the price!!

Sorry about the rant!


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## Sonrisa (Sep 2, 2010)

NO...the strawberries as most fruit and vegetables this year, are horrible , and much more expensive. THey are not even good for cakes becuase they have no taste whatsoever. Husband suspect is the weather, but it could have been the quemicals I don't know. 

About the Gas cylinders, thanks god I don't have to use them anymore, because they were already dificult to find two years ago. I've notice this year I seldom hear the lorry's noise.


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## DeadGuy (Jan 22, 2010)

MaidenScotland said:


> It's appalling the child labour in this country. I am sure I told you when we had a new kitchen installed a young boy was sent and I saw him being punched in the stomach.. I phoned the engineer and told him to take the boy away as I was not paying thousand of us dollars for a young boy to do the job and be abused.
> Then the guilt trips starts.. what if his family need the few pounds he would have been paid?
> I have those small garages beside me and there is one of them who must have a Downs Syndrome boy who is wheeled out when the Gulf Arabs are about, this boy is put into womens high heeled shoes and he approaches the Arabs with a hand written note in various languages asking for money, what the note says I have no idea and I hate to think.


Being an Egyptian myself and seeing how things "work" in here my whole life, I actually never mind anyone sending a kid to do a job, not only cause of the fact that the kid would never be there unless there was a REALLY good reason for him/his family, but mainly cause this kid will be his own boss one day, one day that kid will be "experienced" enough to do the job himself and no one else will take the money that HE worked hard for, yes it breaks my heart when I see a kid being punished during work, but there's nothing I can do about that except for trying to prevent it, and that rarely works.

The other reason I don't mind it is cause it could've gone worse for the kid, I mean don't get me wrong, but at least the kid is learning something that hopefully will be useful for him sooner or later, he could've been learning nothing but begging for money and getting raped his whole life


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## PoleDancer (Apr 14, 2010)

DeadGuy said:


> Fruits and veggies, all the fruits that did not match the EU quality specifications were sent back to the local market, you'd think they'd sell it cheaply after that, but no, you get sh!t tasteless food


I can't let that one go.

On first buying fruit and veg in Egypt, my reactions were:

Eeew. That's ugly. It's all gnarly and twisted with black bits and dirt on it

followed by:

Mmmm. That tastes good.

In the west, we've become conditioned to shop for fruit and veg based on appearance. The European supermarkets will be buying stuff that looks pretty in the store, not what tastes good. Egyptian fruit and veg tastes far better than the stuff typically on sale in Europe. I'll take tasty over pretty every time.


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## Sonrisa (Sep 2, 2010)

What is it that you find that tastes good this winter? So far I haven't found any fruit or vegetable that matches previous years standards in Egypt.

And the prices have almost doubled.


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## MaidenScotland (Jun 6, 2009)

PoleDancer said:


> I can't let that one go.
> 
> On first buying fruit and veg in Egypt, my reactions were:
> 
> ...




but pretty tasty would be good


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## DeadGuy (Jan 22, 2010)

PoleDancer said:


> I can't let that one go.
> 
> On first buying fruit and veg in Egypt, my reactions were:
> 
> ...


Just few days ago I got rid of some oranges that were left since the New Year's Ever, no one could eat them cause they taste like meds!

So far only bananas and apples tasted good, but not everyone can afford that


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## MaidenScotland (Jun 6, 2009)

DeadGuy said:


> Just few days ago I got rid of some oranges that were left since the New Year's Ever, no one could eat them cause they taste like meds!
> 
> So far only bananas and apples tasted good, but not everyone can afford that




all my satsumas are dry...


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## PaulAshton (Nov 18, 2011)

The government is not doing itself any favours by limiting exports to keep foreign reserves in Egypt, it's like they do not understand the money cycle.

A reseller might send $10K to China from his USD account that had been converted from his LE account and have a 50% return on investment which was put back into the economy or invested.

Central Bank of Egypt were playing funny ******s and only allowing a limit of $100K USD every 12 months which is nothing if you run a business

What they don't realise is that people will simply bank offshore and not import items into Egypt but use a drop shipping service to deliver goods to the EU via Turkey and utilise any free trade by setting up shell corporations Egypt will suffer even more..

Ultimately it will be the small guy who runs a pet shop who will suffer


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## Sonrisa (Sep 2, 2010)

yes true, the little sweet baladi bananas are really nice

I dislike the imported ones


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## Sonrisa (Sep 2, 2010)

PErsonally I'd like to buy more egyptian garments and things like bedsheets, but it works cheaper to buy imported. 
I like kids brands like Concrete or Wave but somehow clothes are cheaper in Zara, or Next


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## DeadGuy (Jan 22, 2010)

Sonrisa said:


> yes true, the little sweet baladi bananas are really nice
> 
> I dislike the imported ones


Yes but with 5, 6, and even 7 LE for a kg of the bloody thing, trust me not every one can afford that, even if they wanted to.

Meat, veggies, pasta, rice, sugar, and tea, that's what people prefer to put their money on now, if they had any, fruits are becoming more of a luxury to most families in Egypt now 

And that doesn't do the sellers any good either, cause if people don't buy, they won't make any money......


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## MaidenScotland (Jun 6, 2009)

Sonrisa said:


> PErsonally I'd like to buy more egyptian garments and things like bedsheets, but it works cheaper to buy imported.
> I like kids brands like Concrete or Wave but somehow clothes are cheaper in Zara, or Next




Thing is you cannot get decent 100% Egyptian cotton sheets here at a reasonable price if at all as they are all made for the export market.
Same goes for towels.. although someone whispered in my ear a few weeks ago that if I want hotel luxury towels to let him know but they would be no good to you Sonrisa.. as they are made for the Four Seasons lol.


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## MaidenScotland (Jun 6, 2009)

DeadGuy said:


> Yes but with 5, 6, and even 7 LE for a kg of the bloody thing, trust me not every one can afford that, even if they wanted to.
> 
> Meat, veggies, pasta, rice, sugar, and tea, that's what people prefer to put their money on now, if they had any, fruits are becoming more of a luxury to most families in Egypt now
> 
> And that doesn't do the sellers any good either, cause if people don't buy, they won't make any money......




Meat here is quite simply disgusting.. no taste, full of fat and depending on the cut it can be full of splintered bone.

And why do chickens never have any meat on them??


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## canuck2010 (Jan 13, 2010)

And Company,Inc This cotton place in Maadi sells for export market, the stuff they have in the store is about half the price as quoted on the site from the states, great quality sheets and duvets. A bit pricy unless on sale though.


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## marimar (Feb 9, 2011)

MaidenScotland said:


> Meat here is quite simply disgusting.. no taste, full of fat and depending on the cut it can be full of splintered bone.
> 
> And why do chickens never have any meat on them??



I am starting to feel really sorry for all of you living in Cairo, no nice fruit or veggies, awful meat, that sounds just how we used to be in Sharm. You should all move to Alex, the fruit we buy is lovely, juicy sweet oranges, sweet bananas, lovely variety of vegetables especially broccoli which is a favourite of mine and the kids. We even get good meat, no bones, chickens which last for a good couple of meals. 
Where do you buy your meat? Do I need to send a food parcel? 
I must admit it does depend a lot on finding a good butcher or greengrocer but once you find a good one they have a customer for life.


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## MaidenScotland (Jun 6, 2009)

marimar said:


> I am starting to feel really sorry for all of you living in Cairo, no nice fruit or veggies, awful meat, that sounds just how we used to be in Sharm. You should all move to Alex, the fruit we buy is lovely, juicy sweet oranges, sweet bananas, lovely variety of vegetables especially broccoli which is a favourite of mine and the kids. We even get good meat, no bones, chickens which last for a good couple of meals.
> Where do you buy your meat? Do I need to send a food parcel?
> I must admit it does depend a lot on finding a good butcher or greengrocer but once you find a good one they have a customer for life.




I have to admit that I am not fond of meat here as it is slaughtered the halal method and this puts me off but I am not getting into that argument.

We have lovely bananas here.

I buy any meat that I do want from Carrefour.. there is no way I am buying meat that is hanging in the sun, car fumes, flies.

I love chicken liver but to buy it here and then find it full of tubes just puts me right off it.. I don't buy meat to clean it up when I get it home and the worse thing is if I give it to the waiter to cook he leaves the tubes in.. stomach turning


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## aykalam (Apr 12, 2010)

For nice tasty veg and fruit in Cairo go to Abbaseya district, they have the best tomatoes at a fraction of Metro's prices. Actually, don't go: just send a local to do the errand for you. At home, this is one of my husband's weekly chores


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## expatagogo (May 31, 2010)

I've just returned after being gone a year and a half and I have sticker shock. 

The rise in prices and decrease in quality is stunning.


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