Egypt’s Prime Minister Kamal el- Ganzouri said the country may resort to foreign borrowing “if we have to” and that the country’s economy is far worse than anyone can imagine.
“To save 20 billion pounds ($3.33 billion) there has to be austerity in a way that doesn’t affect the Egyptian citizen,” el-Ganzouri said at a media conference in Cairo today. He said he wants to reduce the budget deficit so inflation doesn’t hurt poor people.
El-Ganzouri’s government must tackle an economy that grew at the slowest pace in at least a decade as a result of the unrest that forced President Hosni Mubarak out in February and deterred tourism and investment.
Gross domestic product expanded 1.8 percent in the fiscal year through June and Egypt has spent almost half its foreign currency reserves in the past 11 months.
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