Egypt's economic news

Egypt's battered banks are starting to hold their own, at least as far as the non-performing loans are concerned. Leading banks have reported either an improvement or no deterioration in this situation. This might seem a rather strange measure to judge the success of banks but given the history and the fall in Egyptian GDP in the first few months of 2011, it is mildly encouraging.

Tourism is down by 7.8 per cent in the first half of 2011 but, so far, Suez Canal tolls were up in June 2011 compared with the previous year, and remittances from Egyptian expatriates were at US$9 billion, well up on the US$6 3 billion of 2010 despite what is happening in Libya. Inflation fell in June.

The government has continued to prepare industrial enterprises for the proposed cut in subsidies for the industrial sector to save around US$0.85 billion in the budget, pointing to the earlier increase in production and experts from this sector.

Palm Hills, the real estate developer known for its luxury compounds and associated with the father-in-law of Alaa Mubarak, has reported second quarter losses. The company and some of its senior executive are being investigated as a part of the probes being made into the sources of revenue of people associated with the Mubarak regime.

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