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FOR THE FIRST time in four years there is room for optimism about the Egyptian economy. The economy is growing, the stock exchange is beginning to show real gains and there is hope that the government will begin structural reform. Now the appointment of a new central bank governor, Farouk El Okdah, has boosted confidence. He has earned the respect of bankers in the two months since he took office and has started to bring order to the country's currency policy.
However, few bankers are under any illusions about the scale of the task ahead if the third-largest and most diversified economy in the Middle East is to fulfil its potential. Growth is still low by emerging-market standards and not substantial enough to create the jobs needed to support the country's rapidly growing population. The private sector has yet to feel the benefits of the better macroeconomic performance and the government has until now failed to deliver the privatization needed to create a dynamic economy.
"The economy is looking a little better, with growth of 3.3%