By Shane McGinley
The outflow of FDI in 2011 is in contrast to inflows of US$6.4bn in 2010
Arab Spring demonstrations and the removal from power of former president Hosni Mubarak has had a disasterous impact on the country’s foreign direct investment, according to figures released by the Egyptian central bank on Sunday.
Latest figures from the North African state show it had foreign direct investment outflows of US$482.7m in 2011, compared with inflows of US$6.4bn in 2010.
As the country struggled to rebuild its economy after the change in government, its balance of payments deficit rose to US$18.3bn in 2011, in contrast to a surplus of US$1.3bn in 2010, according to central bank data reported by the Bloomberg news agency.
The news comes as Egypt’s Ministry of Finance said he expects the budget deficit for the fiscal year that ends in June to widen to EGP150bn (US$25bn), higher than previously forecast, the state-run Middle East News Agency said.
Planning and International Cooperation Minister Fayza Aboulnaga had announced a target of EGP144bn , or 8.7 percent of expected economic output, in January. The previous target was EGP134bn. The revision stems from election expenses and increased payments to some state employees, MENA said, citing Abdel Aziz Mohamed, undersecretary at the ministry.