TOWARDS SUSTAINABLE DEVELOPMENT

.. FOR EGYPT 2050
Dr. Karim M. Ayyad
Lecturer of Green   Building Science
Energy and Sustainable Development Expert
kayyad@msa.eun.eg
Egypt is expected to occupy the 15th place on the list of the strongest economies in
the world by 2050, in a report released by PWC in 2017. But in order to achieve this
rank the country needs extensive work in the coming 33 years.
Development in Egypt has been struggling since the beginning of this decade.
However, things started to get better. The budget deficit reached 11.5 % of GDP in
FY15 (compared to 12.2 % of GDP in FY14, and 13 % of GDP in FY13), thanks to the
partial streamlining of energy subsidies, revenue-enhancement measures, and the drop
in international oil prices.
But these measures have put more pressure on citizens, especially those already
impoverished, making it harder for them to lead a comfortable life style. Economic
growth doubled (to 4.2 %) in FY15, after four years of slow growth. Yet challenges
remain, and were aggravated by the recent foreign exchange crunch. Growth in FY15
(July 2014/June 2015) was attributed to the restoration of stability and improved
confidence, resilient private consumption, and the government’s public investments that
started to crowd in private investments.
The economy is expected to recover by the end of 2017 or the first quarter of 2018.
However, Egypt still has to reform its energy, urban and agricultural sectors. In this part
of the series we will discuss the energy sector.