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Egyptian economy hit by £11.5 billion losses since the coup

February 8, 2014 at 2:48 am

The military coup has resulted in a massive loss to the Egyptian economy estimated at about 120 billion Egyptian pounds (around £11.5 billion/ $17.1 billion), economic experts have calculated. The economy was paralysed after the removal of elected president Mohamed Morsi by a military coup.

The losses reflect the reduction of foreign investment in Egypt as well as that fact that many factories and production facilities stopped working and imports and exports suffered. Money markets were also affected by an estimated 50 billion Egyptian pounds.

The sector most affected by the political instability is the tourism industry. A number of foreign countries have warned their nationals of the dangerous situation in Egypt and asked them to leave or not travel to Egypt for their own safety.

Although the government in Cairo announced a rise in foreign currency reserves after the military coup, experts say that this has no real effect as most is held on deposit to be returned at a later date. No new sources of foreign currency have been explored yet by the interim government.