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The Economy of Egypt

Egyptian Economy

Egypt's map

Economy - overview: Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but has opened up considerably under former President Anwar EL-SADAT and current President Mohamed Hosni MUBARAK. Cairo has aggressively pursued economic reforms to encourage inflows of foreign investment and facilitate GDP growth. In 2005, Prime Minister Ahmed NAZIF's government reduced personal and corporate tax rates, reduced energy subsidies, and privatized several enterprises. The stock market boomed, and GDP grew about 7% each year since 2006. Despite these achievements, the government has failed to raise living standards for the average Egyptian, and has had to continue providing subsidies for basic necessities. The subsidies have contributed to a sizeable budget deficit - roughly 7% of GDP in 2007-08 - and represent a significant drain on the economy. Foreign direct investment has increased significantly in the past two years, but the NAZIF government will need to continue its aggressive pursuit of reforms in order to sustain the spike in investment and growth and begin to improve economic conditions for the broader population. Egypt's export sectors - particularly natural gas - have bright prospects.

GDP:

GDP - real growth rate: 6.9% (2008 est.) 7.1% (2007 est.) 6.8% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 13.4% industry: 37.6% services: 48.9% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 3.7% highest 10%: 29.5% (2000)

Distribution of family income - Gini index: 34.4 (2001)

Inflation rate (consumer prices):

Labor force: 24.72 million (2008 est.)

Labor force - by occupation: agriculture: 32% industry: 17% services: 51% (2001 est.)

Unemployment rate: 8.7% (2008 est.)

Budget: revenues: $40.46 billion expenditures: $51.38 billion (2008 est.)

Industries: textiles, food processing, tourism, chemicals, pharmaceuticals, hydrocarbons, construction, cement, metals, light manufactures

Industrial production growth rate: 7.7% (2008 est.)

Electricity - production: 109.1 billion kWh (2006 est.)

Electricity - production by source:

Electricity - consumption: 96.2 billion kWh (2006 est.)

Electricity - exports: 557 million kWh (2006 est.)

Electricity - imports: 208 million kWh (2006 est.)

Oil - production: 664,000 bbl/day (2007 est.)

Oil - consumption: 652,700 bbl/day (2006 est.)

Oil - exports: 204,700 bbl/day (2005 est.)

Oil - imports: 140,000 bbl/day (2005)

Oil - proved reserves: 3.7 billion bbl (1 January 2008 est.)

Natural gas - production: 47.5 billion cu m (2007 est.)

Natural gas - consumption: 31.8 billion cu m (2007 est.)

Natural gas - exports: 15.7 billion cu m (2007 est.)

Natural gas - imports: 0 cu m (2007 est.)

Natural gas - proved reserves: 1.656 trillion cu m (1 January 2008 est.)

Agriculture - products: cotton, rice, corn, wheat, beans, fruits, vegetables; cattle, water buffalo, sheep, goats

Exports: $33.36 billion f.o.b. (2008 est.)

Exports - commodities: crude oil and petroleum products, cotton, textiles, metal products, chemicals

Exports - partners: US 9.7%, Italy 9.5%, Spain 7.6%, Syria 5.5%, Saudi Arabia 4.9%, UK 4.2% (2007)

Imports: $56.43 billion f.o.b. (2008 est.)

Imports - commodities: machinery and equipment, foodstuffs, chemicals, wood products, fuels

Imports - partners: US 11.7%, China 9.7%, Italy 6.4%, Germany 6.3%, Saudi Arabia 4.7%, Russia 4.3% (2007)

Debt - external: $28.84 billion (31 December 2008 est.)

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: Egyptian pounds (EGP) per US dollar - 5.4 (2008 est.), 5.67 (2007), 5.725 (2006), 5.78 (2005), 6.1962 (2004)

Fiscal year: