Egypt improved its macroeconomic performance throughout most of the last decade by following IMF advice on fiscal, monetary, and structural reform policies. As a result, Egypt managed to tame inflation, slash budget deficits, and attract more foreign investment. In the past four years, however, the pace of reform has slackened, and excessive spending on national infrastructure projects has widened budget deficits again. Lower foreign exchange earnings since 1998 resulted in pressure on the Egyptian pound and periodic dollar shortages. Monetary pressures have increased since 11 September 2001 because of declines in tourism and Suez Canal tolls, and Egypt has devalued the pound several times in the past year. The development of a gas export market is a major bright spot for future growth prospects. In the short term, regional tensions will continue to affect tourism and hold back prospects for economic expansion.

(Source: "The World Factbook 2003")