- Howard Handy
- Published Date:
- May 1998
© 1998 International Monetary Fund
Cover design, charts, and composition: In-Ok Yoon, Julio Prego, and IMF Graphics Section
Cataloging in-Publication Data
Egypt: beyond stabilization, toward a dynamic market economy / by a staff team led by Howard Handy. – Washington, DC : International Monetary Fund, 
p. cm. – (Occasional paper, ISSN 0251–6365 ; 163)
I. Egypt – Economic conditions – 152 2. Egypt – Economic Policy. 3. Economic stabilization – Egypt. I. Handy, Howard. II. International Monetary Fund. III. Series: Occasional paper (International Monetary Fund); no. 163.
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The following symbols have been used throughout this paper:
… to indicate that data are not available;
n.a. to indicate not applicable;
— to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
– between years or months (e.g., 1994–95 or January-June) to indicate the years or months covered, including the beginning and ending years or months;
/ between years (e.g.. 1994/95) to indicate a crop or fiscal (financial) year.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not States, but for which statistical data are maintained and provided internationally on a separate and independent basis.
This occasional paper is a collection of studies focusing on economic developments in Egypt during the 1990s, a period of transformation toward a dynamic market economy. The studies were prepared in conjunction with the Article IV review of the Egyptian economy undertaken in October 1997.
The paper is a collaborative work coordinated by Howard Handy. The principal authors of the sections are Christopher Lane (Section I), Amer Bisat (Section II and Section IV, with Joannes Mongardini), James Daniel (Sections III and VII), Arvind Subramanian and Robert Khan (Sections V and X), Arvind Subramanian (Section VIII), Joannes Mongardini (Section VI), and Peter Allum (Section IX).
The authors would like to acknowledge the contributions of Mohammed El-Erian, V, Sundararajan, and Luca Ricci. The paper also benefited from assistance given by officials of the Egyptian Ministry of Economy and the Central Bank of Egypt, and also Mokhtar El Khatab, Ahmed Galal, and Heba Handoussa. The authors would like to thank Wilma Gonzalez Buenaobra and Anne-Barbara Hyde for excellent secretarial assistance, Rusty Hall for technical assistance, Nada Massoud, Nahed El-Tantawy, Rafik William for research assistance, and Juanita Roushdy of the External Relations Department for editing the manuscript and coordinating the publication.
The views expressed here are solely those of the authors and do not necessarily reflect the opinions of IMF Executive Directors or the Government of Egypt.
List of AbbreviationsARDL
autoregressive distributed lagASEAN
Association of South East Asian NationsBOT
Bank for Credit and Commerce InternationalCAA
Central Auditing AgencyCBE
Central Bank of EgyptCMA
Capital Market AuthorityECES
Egypt Centre for Economic StudiesECM
error correction modelEGPC
Egyptian General Petroleum CorporationEISA
Egyptian Insurance Supervisory AuthorityERER
equilibrium real exchange rateESA
Employee Shareholder AssociationEU
gross domestic productGDR
global depository receiptG-7
Group of Seven, industrial nationsGST
general sales taxHIPC
highly indebted poor countriesIAS
international accounting standardsM2
multilateral exchange rate model (of the IMF)MENA
Middle East and North AfricaMULTIMOD
multicurrency macroeconomic model (of the IMF)NAIRU
nonaccelerating inflation rate of unemploymentNDA
net domestic assetsNEER
nominal effective exchange rateNGO
National Investment BankNIR
net international reservesOECD
Organization for Economic Cooperation and DevelopmentOIN
other items netPEO
Public Enterprise OfficeQR
real effective exchange raterepo
Suez Canal AuthoritySFD
Social Fund for DevelopmentSUMED
Suez-Mediterranean (oil pipeline)TFP
total factor productivityTOT
terms of tradeUSAID
U.S. Agency for International DevelopmentVAT