Commentaries
Fatih Özatay, PhD - [Archive]
Egypt and Tunisia: Two indicators 08/02/2011 - Viewed 1812 times
Based on my observations on the streets, Egypt and Tunisia appear as poor countries. I have no data on income distribution.
Today I want to examine two macroeconomic indicators for Tunisia and Egypt. I do not have the knowledge to make an economic assessment for these countries. Therefore, I will settle with comparing the selected macroeconomic data with that for other countries.
The unemployment figures first: In the analysis Egypt and Tunisia are accompanied by the following. Three large economies: USA, Germany and Japan. Three emerging market economies: Turkey, Brazil and South Africa. Troubled EU countries: Ireland, Portugal, Spain and Greece. Table 1 gives the 2000-2007 average, and 2008 and 2009 unemployment data for the listed countries.
Egypt in the middle-group
I am not sure about the reliability of unemployment data for Egypt and Tunisia, two dictatorships. But I will skip this issue. Unemployment rate in Tunisia is quite high. The country ranks the second following South Africa considering 2000-2007 average or the 2008 data. Egypt ranks in the middle.
Rate higher than that in Turkey
Along with the global crisis, unemployment rate increased compared to 2008 in all of the studied countries. However, the pace of increase in the unemployment rate in Egypt and Tunisia is not as striking as that witnessed in USA, Ireland, Spain or Turkey. But given the concerns about the reliability of the figures for those two, the fact that unemployment rate did not increase during the crisis must be highlighted.
The second table gives the per capita income in the countries except Germany and Japan as a ratio to that the per capita income in USA. The figures are comparable as income is measured on the basis of purchasing power parity. The comparison reveals that Egypt is the poorest country of the group. However, Tunisia's per capita income level is two times that of Egypt and is higher than that of Turkey.
The country seems as poor
To what extent it is correct that Tunisia has a higher per capita income than Turkey? I have doubts. I have visited both Egypt and Tunisia a couple of times. Based on my observations on the streets I also have to say that Egypt looks considerably poorer than Tunisia. I have no data on income distribution. I have to search for relevant data. If I find significant and comparable data, I will share with you.
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Table 1: Unemployment Rate (%) |
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2000-2007 |
2008 |
2009 |
|
USA |
5.0 |
5.8 |
9.3 |
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Germany |
8.9 |
7.3 |
7.5 |
|
Japan |
4.7 |
4.0 |
5.1 |
|
Brazil |
10.4 |
7.9 |
8.1 |
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South Africa |
26.8 |
21.9 |
24.3 |
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Turkey |
9.5 |
10.9 |
14.0 |
|
Ireland |
4.4 |
6.3 |
11.8 |
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Spain |
10.5 |
11.3 |
18.0 |
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Portugal |
6.2 |
7.7 |
9.6 |
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Greece |
10.0 |
7.7 |
9.4 |
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Egypt |
10.2 |
8.1 |
9.0 |
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Tunisia |
14.1 |
12.6 |
13.3 |
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Source: IMF, World Economic Outlook |
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Table 2: Per Capita income Compared to that of USA (%)
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1960 |
1980 |
2000 |
2007 |
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Brazil |
20.9 |
35.2 |
21.5 |
22.1 |
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South Africa |
33.9 |
36.1 |
21.3 |
24.8 |
|
Turkey |
17.0 |
16.8 |
16.3 |
17.8 |
|
Ireland |
44.2 |
53.5 |
81.8 |
95.1 |
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Spain |
38.9 |
57.9 |
61.7 |
73.7 |
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Portugal |
26.6 |
41.7 |
48.9 |
47.2 |
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Greece |
38.2 |
65.3 |
51.3 |
64.7 |
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Egypt |
10.1 |
11.5 |
11.8 |
13.5 |
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Tunisia |
- |
22.7 |
19.9 |
23.3 |
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Source: Calculated using Penn World Tables |
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This commentary was published in Radikal daily on 08.02.2011
