As the country’s economic crisis continues to administer its blistering effects on businesses and consumers, industry insiders and experts are saying the country still has yet to bear the brunt of an economic downturn that has no real relief in sight.
If the government continues down its current path, and hopes for loans from international foreign institutions remain unattainable, such as Egypt’s US$4.8 billion loan from the International Monetary Fund, experts have repeatedly warned that the situation will become drastically worse. When it does, they predict the real effect of the crisis will come in a tsunami of price increases that could spark social unrest.
A net importer of food and consumer goods, Egypt relies heavily on foreign supplies imports to feed its growing population.
But retail and import sources are warning that the ongoing devaluation of the pound will lead to large price raises in the immediate future, especially those of imported products. These price raises, experts say, will shock the Egyptian economy and drive it into further crisis. (Egypt independent)