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Policy Brief

Egypt After the Crisis: Resilience and New Challenges

May 5, 2010

Franco Zallio

Last year Egypt recorded a growth rate far better than other major countries in the MENA region: +4.7 percent against +1 percent of Iran, +0.2 percent of Saudi Arabia and -5 percent of Turkey.

This good performance has not prevented, however, the rise in unemployment. In order to decisively reduce its substantial social problems, and strengthen its regional role, Egypt needs an extended period of high economic growth, which in turn requires deepening the economic reforms launched in 2004. The negative effects of the international crisis, together with the 2010-2011 elections, hamper this process and cloud the outlook.

The United States and the European Union, whose policies toward Egypt today tend to be complementary, may converge in their support for economic reforms.

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