In the aftermath of the recent financial crisis, a number of governments around the world reacted by undertaking an expansion of fiscal policy, an approach that received a ringing endorsement from the International Monetary Fund. Far from disrupting that consensus, the Egyptian government adopted a similar strategy. Its efforts have been rewarded: the country's economic growth rates remain above 4%, higher than the average for the period between 2000 and 2004. Moreover, its current account balance is showing signs of narrowing and the economy is on course to record growth closer to 5% this year.
Egypt's economic success is due in large part to its acclaimed finance minister, Youssef Boutros-Ghali. From 2004, Mr Boutros-Ghali instituted a programme of reforms that sought to strengthen the government's finances. Key measures included an extensive tax overhaul, which reduced rates and categories in customs, stamp and income tax. He also introduced new property taxes and increased penalties on tax evasion.
