10/07/1999
Al-Alam Alyom Newspaper 1999/JULY /10
The Egyptian market is experiencing a temporary recession due to the low demand and accumulation of goods. Recession is considered natural in markets and isn’t necessarily negative. This transitional phase resulted from the high demand for the dollar to cover imports leading to unfair competition and withdrawal of cash liquidity.(Available in Arabic –German in PDF)
The Egyptian market has been experiencing a recession illustrated by the low demand and accumulation of goods. Several factors are contributing such as an increase of supply over demand, under-pricing, and withdrawal of dollars from the banking market due to the rise in importation. This leads to unfair competition and withdrawal of cash liquidity. Recession is considered natural in markets and doesn’t necessarily reflect negative behavior. The transitional phase resulted from the high demand of the dollar to cover imports. The market became saturated with an oversupply of goods. Under-pricing of domestic and imported goods is another problem experienced by the recession. Recession in the domestic market is caused by the withdrawal of cash liquidity from the market. Unemployment, job availability and low investment rates also attribute.