EGYPT Headlines - Reuters

US shifts toward caution on reform in Egypt

Following earlier comments in March by Secretary of State Condoleezza Rice, US has shifted approach in favor of school of thought that advocate cautious and limited reforms as opposed to previous policy of supporting substantial reforms. Shift in policy is due to pressure by groups close to US administration.

IMF says Egypt economic recovery to keep rolling

IMF forecast Egypt's economy would grow 5.0 percent in real terms in 2005/06 ending June 30, after a 4.8 percent expansion in 2004/05 and 4.1 percent growth the year before.
Inflation is likely to slow in 2005/06 to a 8.0 percent annual rate from 9.6 percent in 2004/05
While generally upbeat in its outlook, the IMF warned Egypt's growth rate still lagged what was needed to keep up with the country's labor force growth and said government borrowing and debt remained too high.