Global Economy

Friday 20 May 2011

A2 Macroeconomics: Economic effects of a revolution

Egypt is a medium income country. Important economic sectors include tourism and manufacturing.
The political uncertainty that goes with the regime change over the summer of 2011 has caused difficulties: tourists stay away, manufacturing orders are so low that there is 50% spare capacity, Egyptians abroad are not sending as much money back home (you will hear the term remittances mentioned, these have fallen), preferring to keep their money in safer currencies for now. With neighbour Libya also in political disarray, there is a net outflow of money - Egyptians helping those in even worse political circumstances.
Link to video



http://video.ft.com/v/946281124001/The-costs-of-Egypt-s-revolution

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