If macroeconomic indicators are to be believed, Egypt's economic growth has ground almost to a halt over the past three years. Inflows of foreign direct investment have dried up, and GDP growth rates have plummeted from as high as 7 percent in 2008 and 2009 to merely 2 percent in 2013. But are the indicators to be believed?
The answer is yes and no. Though GDP should never be taken as an accurate representation of a country's economic health, in Egypt, the figures do reflect the collapse of the country's entire productive capacity in the years following the fall of Hosni Mubarak's regime in 2011.
The major ratings agencies, which previously regarded Egypt as one of the region's most promising emerging markets, have slashed the country's credit scores, deterring foreign investors. Moreover, the anti-Mubarak revolution led to massive capital flight, which has halved the country's currency reserves.
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