Mursi Ouster Hastened by Failure to Grow Egypt's Economy

With growth already the weakest in two decades, unemployment stands at a record 13.2 percent. The mounting risk is of a vicious circle in which the street clashes that left at least 18 dead within one day alone and a political vacuum drive the economy deeper into a slump during the transition period. That threatens foreign investment, tourism and the chances of an International Monetary Fund aid package.

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A May report by the United Nations said poverty and food insecurity had jumped in Egypt over the past three years. It estimated 17 percent of the population struggle to secure enough food, up from 14 percent in 2009. The malnutrition rate has risen to 31 percent of children under five, up from 23 percent in 2005.

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Now more than 1 million people have lost work since the start of 2010 and of those without work, 80 percent are under the age of 30 and two of every five Egyptians continue to live on less than $2 a day.

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The budget deficit is projected by the government to reach 11 percent to 11.5 percent of gross domestic product this fiscal year. International reserves have also been sapped by about 60 percent to $15.2 billion, the lowest since 2004. And tourism, the lifeblood of Egypt's economy, is plunging.