Update on Egypt: The Price of Unrest
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The recent protests in Egypt have taken a toll on the country's businesses and short-term economic growth:
- The government shuttered the stock exchange after unrest caused the benchmark index to plummet by 17%.
- Moody’s, Fitch Ratings, and Standard & Poor’s have all downgraded the country’s ratings and outlook.
- Billions have been lost in tourism, which accounts for more than 10% of the Egyptian GDP.
- Even the entertainment industry in Egypt—known as the “Hollywood of the Middle East”—is suffering, according to the Hollywood Reporter.
While many Egyptian business executives fear that they will be made scapegoats, Naguib Sawiris, head of the Mideast's largest telecom company, told BusinessWeek that the turmoil will ultimately foster a better business climate. It remains to be seen whether recent events will result in a democratic, business-friendly government, but the following video provides in-depth economic analysis of what is coming to be known as “the battle for Egypt.”