The Egyptian tourism rate has slowed somewhat in the second half of 2008, according to analysts. The global credit crunch and economic slowdown is taking its toll on one of Africa’s best economies, but growth is still expected to be strong in the coming year.
Egypt has weathered the financial crisis better than many countries so far, but it is still expected to experience a further slowing of its growth. Europe accounts for some 60 percent of Egyptian exports, as well as many of its international tourists. With many European countries having major economic slowdowns, it will only impact Egypt negatively. Many Europeans are cutting back on holiday travel, and the North African nation will see its tourism rates impacted.
While things will slow, growth for the year is still expected to be above 5 percent, a very good rate. With commodity prices dropping, it may help to ease the impact on the country. Also, some analysts expect the government to increase spending to help the economy get back to its targeted growth rate of between 6 and 7 percent.
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