Abdel Fattah El-Sisi was sworn into office as president on June 8, 2014. Prior to this post, El-Sisi was head of the Egyptian Armed Forces and First Deputy Prime Minister and Minister of Defense in previous governments. Presidential elections were the second of a three step transition. The first phase was voting on a new constitution which happened in early 2014. Step three of the transition, parliamentary elections, is expected to be completed in 2015.
In January 2011, Egypt erupted in large-scale anti-regime demonstrations, resulting in the resignation of President Mubarak and the collapse of the regime that had been in power for 30 years. On June 30 2012, Dr. Mohamed Morsi, the candidate of the Freedom and Justice Party was elected as Egypt’s fifth president and the first from outside the military. On August 12, 2012, President Morsi nullified a declaration issued by the military effectively assuming broad executive and legislative powers. Political tensions mounted starting in June 2013 with demonstrations against President Morsi in the lead up to the first anniversary of his presidency. President Morsi was removed and interim President Adly Mansour was sworn in on July 4, 2013. Presidential elections were held on June 8, 2014, and Abdel Fattah El-Sisi was confirmed with almost 97% of the votes. Parliamentary elections are planned to be held in 2015.
On July 5, 2014, President El-Sisi announced a wide range of reforms, introducing new taxes, increasing selected taxes, and reducing energy subsidies. Reforms are starting to have a positive impact on the economy. Economic growth in Fiscal Year (FY) 14 of 2.2% is projected to almost double to 4% in FY15. The budget deficit is expected to decline to 11.3% of GDP in FY15, compared to 12.8% in FY14, and 14% in FY13. This will bring down government debt to GDP ratio to 94% by end FY15, from 95.5% in end-FY14. Egypt has been benefiting from large-scale exceptional financing from the Gulf. Saudi Arabia, United Arab Emirates, and Kuwait have committed around US$20 billion to Egypt through a mix of central bank deposits, cash and in-kind grants, and project aid. On March 13-15, 2015, during the Egypt Economic Development Conference (EEDC), the Government highlighted its economic reform program designed to restore fiscal stability and drive growth, and attract domestic and international investors across key sectors. The World Bank Group (WBG) will engage with Egypt on the reform agenda.
Last Updated: Mar 01, 2015