http://www.pewglobal.org/2014/09/09/global-public-downbeat-about-economy/#2-widespread-economic-gloom >> interesting piece of article incorporating informative Spring poll results regarding economic outlook in different countries. My comments will be concerned mainly with the Egyptian economy case being categorized as an emerging one according to the economic facts mentioned in the attached figure where Egypt is highlighted in red color.
Bearing into mind that the article’s field work was conducted in Spring 2014 specifically between April 10- April 29, 2014, I think the percentage of economic future expectations viewed by Egyptian public opinion could be currently higher and pointing more towards “improving” category than those figures reading as follows “35% assume it will worsen”. Today as of September 2014 and after almost 5 months of conducting said fieldwork, “improvement” categorization is stemmed from the current economic news and headlines illustrating Egyptian people rush to participate in the new Suez Canal project funding by purchasing loads of investment certificates which reflect their belief in an improving economy and deep trust in its capabilities post finalizing such lucrative project and many others in addition to Egyptians positive outlook to political and economic climate post successfully electing the country’s new president and revealing many of his excellency contemplated mega economic projects and the current government solid commitment to attracting new investments. Such improving outlook was also reiterated by local and international investors trust and belief in the country’s economic leadership and its governmental institutions evidenced by Cairo Stock Exchange “CASE” index climbing to high rocketing levels during the few past months thus surpassing those levels achieved in 2010.
Thus and based on the above, I highly think that some of the field work conclusion regarding future outlook should be adjusted to truly reflect the Egyptian public opinion current optimism by pouring almost EGP 33 Bn in the new project’s funding within a 5 working–days period. Moreover, another graph depicting reasons for Egyptian people economic worries and concerns represented mainly in lack of unemployment could explain the few past days economic and investment behavior, as the new project is expected to generate around 1MM job opportunities as a starter.
Worth noting that fixing the major economic problem requires paying close attention to the other problems indicators. Meaning, the unemployment problem could be solved by using different economic tools and techniques incorporating launching new projects or through local and international borrowing. My guess in the Egyptian case, borrowing isn’t always the optimum answer instead fresh funds solution is more preferable and requires attracting new investment and further encouragement for current investors, thus increasing investment levels and diminishing unemployment rates. But while doing so, economists and policy crafters should be paying close attention and observing periodically inflation rates to prevent prices from hiking upwards and ultimately losing control and thus solving one problem on the expense of intensifying and escalating another one.
That being said guess all concerns should be tackled in parallel manner with priority to solving the people’s utmost economic concern but not neglecting others. I think a successful economic recipe = Right timing of Economic Policies + Appropriate duration and extent of policy implementation+ Accurate and creative mixture of Economic Policy and Tools application.