Economic growth in Egypt has spurred foreign investment but done little for the country's working class, economic analysts said Thursday.

With economic growth at an annual rate of 7 percent, Egypt has seen foreign investments jump from $450 million in 2003 to more than $10 billion in 2007, USA Today reported.

But the government's renewed focus on capital markets hasn't kept inflation at bay and unemployment, while in decline, remains at 9 percent, the report said.

Two or three years ago, this place would be packed and they'd have to line up to get a table, Gomaa Ali, a restaurant owner facing a day of depressed sales, told USA Today.

Egyptian Prime Minister Ahmed Nazif's government is reluctant to do more, economist at the Institute of International Finance George Abed said. They're not in a mood to be challenging the street.

While a majority of the Egypt's 80 million people struggle, the country has gained strength in the international business community, jumping ahead of 26 countries in 2007 in the World Bank's annual business-friendly survey, the report said.

Egypt, however, ranks 105 out of 179 countries in a Transparency International survey measuring executive's opinions on local corruption, the report said.

Copyright 2008 by United Press International


Publication date: 15 May 2008   

Source: UPI-1-20080515-09552500-bc-egypt-economy.xml

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