Solving Egypt's economic crisis is a priority of the government's agenda. The economy is suffering from a deficit which was deepened after the January 25 Revolution to hit 8.5 percent at the end of April. Samir Radwan, Egypt's finance minister, described Egypt's economy as “promising” before the revolution. He blamed the January uprising for the worsening economic downturn. Before the uprising, the deficit rate was 7.9 percent. Radwan predicts Egypt's growth rate to decline to 2 percent in the fiscal year 2011/2010. He also expects expansion of the deficit to hit 9.1 percent (about 149 billion EGP/ U.S. $25 billion) and public debt to reach 1.2 trillion (U.S. $200 billion). He said the interest rate on domestic debt has risen from 7 to 11 percent. He also said the Egyptian government has spent about 7 billion EGP (U.S. $1.2 billion) since the beginning of the January 25 Revolution because of strikes. Radwan described Egyptian workers returning from Libya as a “heavy burden,” particularly because of Egypt's current crisis. Egypt's economic diversity pushes economic growth, said Radwan, adding that it is necessary to diversify Egypt's industrial production, which would move Egyptian industry forward. Radwan said he hopes to bridge the supply gap, which has reached U.S. $2 billion, at the end of the current fiscal year, in June 2011. He said Egypt's need could be covered through aid, loans, etc. The minister said the cost of the last period was very high and is still reflected in the budget, which affects the possibility of achieving the objectives of the Revolution. He said there is a need for a reform in the systems of salary, taxes, and subsidies, and that the Egyptian economy needs to work again through activating tourism. Radwan ruled out the possibility of bankruptcy of inability to repay debts but stressed the need to increase production to move Egypt out of its crisis.
