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Egypt Prez faces economic woes

world Updated: Jun 27, 2012 01:10 IST
Reuters
Highlight Story

Egypt’s new president has a window of opportunity to pull the economy from the brink of disaster, but he will have to chart a careful path to convince a host of deeply sceptical players at home and abroad that his is a government they can trust.

After winning the country's first freely contested election for head of state, the Muslim Brotherhood's Mohamed Morsi, 60, brings with him strongly free-market policies that would delight investors were it not for Egypt’s daunting economic challenges.

He also brings a detailed economic plan meticulously drawn up over the course of a year, supported by the Brotherhood's well organised political machine.

However, to spur growth and win over investors to trust Egypt for the long term, Morsi will have to restore stability to a country rocked by sometimes violent political turmoil in the 16 months since an uprising forced Hosni Mubarak from power.

To do this, he will have to build up a working relationship with generals who stripped the presidency of many of its powers in the week before the result of the presidential election was announced on Sunday.

He also faces the prospect of a new constitution to replace the current interim constitution which is vague on the full extent of presidential powers.

But analysts say the popular mandate handed to Mursi in the election makes it harder for political opponents to obstruct reforms he initiates.