Amr Nabil/Press Association Images. All rights reserved.The Egyptian economy is currently undergoing a severe crisis. The traditional sources of hard currency, such as the tourism industry, Suez Canal, worker’s remittances, and export of oil and gas have all been underperforming, triggering a currency crisis.
The Egyptian pound has significantly decreased in value; the difference between official exchange rates and the black market has reached a whapping 32%, which in turn has pushed the country into a spiraling cycle of inflation.
The immense sums of aid received from Gulf States have been squandered in huge infrastructure projects with dubious economic returns. The failed expansion of the Suez Canal as well as massive arms deals are the most prominent examples, placing Egypt - as of 2015 – in the position of the fourth largest arms importer in the world.
