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flag Egypt Egypt: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Egypt launched an economic reforms program, including a large stimulus plan in 2008. Consequently, tariffs and taxes were lowered and simplified. The transparency of the national budget was reinforced and many privatizations were initiated. This new policy bore its fruits as growth reached a level of more than 5% in 2009 and 2010, especially thanks to the resumption of private and public consumption. The construction, communications, wholesale and retail sectors, catering and hospitality, as well as manufacturing contributed to the development of economic growth. However, the year 2010 was marked by an under-performance of the sectors which most strongly contribute to the country’s GDP, namely agriculture and mining. The IMF growth estimates for 2011 are between 5.5% and 5.8%, counting on the increase in consumption, recovery of foreign growth (tourism and the Suez Canal) and a resumption of investments.

Although the Egyptian economy has entered into a cycle of progressive growth, its level of growth remains insufficient to maintain employment and reduce the share of population living below the poverty of line (18%). In addition, the country faces a high rate of inflation (about 10%). Foreign accounts, weakened during the crisis by a decline in foreign exchange earnings and net capital flows, have recovered and the trade balance returned to surplus in 2010.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 188.61218.47231.89e252.78272.96
GDP (Constant Prices, Annual % Change) 4.75.1e1.2e1.84.0
GDP per Capita (USD) 2,456e2,8082,9223,1233,306
General Government Gross Debt (in % of GDP) 75.673.876.276.675.5
Inflation Rate (%) 16.211.711.1e11.310.8
Unemployment Rate (% of the Labor Force) 9.59.010.411.511.3
Current Account (billions USD) -4.42-4.32-4.41-5.65-6.01
Current Account (in % of GDP) -2.3-2.0e-1.9e-2.2-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

Agriculture contributes around 13% of the GDP and employs about a third of the active population. The warm climate and the abundant Nile water allows for several annual harvests. The main crops are cereals, cotton, sugar cane and beets.

Egypts remains a country with little industry. With its diverse natural reserves (gold, minerals, iron, oil and gas), oil and gas-related activities and the secondary sector account for just over a third of the GDP. Egypt is the world’s sixth largest exporter of natural gas.

Finally, the tertiary sector represents around 50 % of the Egyptian GDP. It is largely dominated by revenues from telecommunications (which grew by 11% during the first quarter of 2010) and from tourism (the tourist industry brings about 11b in annual revenues. For example Cairo received 14m of visitors in 2010).

In spite of its economy’s diversification, the country still depends for a large part of its income on the Suez Canal (380m during the first quarter of 2010).

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 31.6 23.0 45.3
Value Added (in % of GDP) 10.1 29.0 60.9
Value Added (Annual % Change) 3.3 7.6 2.6

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Egyptian Pound (EGP) - Average Annual Exchange Rate For 1 USD 5.735.645.435.545.62

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Egypt on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
59.1/100
Position:
Mostly unfree
World Rank:
92/179
Regional Rank:
11/17

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

The Egyptian market is gradually opening up, especially after signing an agreement with the European Free Trade Association (EFTA) in 2006, and promoting a free trade treaty with the United States. Its three primary export partners are the European Union, which represents more than a third of the trade, United States and Syria. The EU and the USA absorb almost 60% of egyptian exports. Egypt mainly exports mineral fuels and oil, cotton, iron and steel. It imports mainly consumer electronic goods and capital goods, nuclear reactors and nuclear-powered boilers, cereals, food products and chemical products. Import volume has doubled and is twice the export volume, a fact which contributed to the deterioration of the country's trade balance, now a deficit (USD 25.1b in 2010)

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 27,30037,10048,38244,94652,923
Exports of Goods (million USD) 16,72819,22426,22423,06226,438
Imports of Services (million USD) 10,28813,08816,33512,76512,659
Exports of Services (million USD) 15,83419,66024,66821,30223,762
Imports of Goods and Services (Annual % Change) 21.828.826.3-17.9-16.1
Exports of Goods and Services (Annual % Change) 21.323.328.8-14.5-10.6
Imports of Goods and Services (in % of GDP) 31.634.838.631.828.2
Exports of Goods and Services (in % of GDP) 29.930.333.025.021.3
Trade Balance (million USD) -8,438-14,900-19,759-16,818-
Trade Balance (Including Service) (million USD) -3,873-9,299-12,4629,233-
Foreign Trade (in % of GDP) 61.565.171.756.749.5

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Italy 8.4%
Spain 6.2%
Saudi Arabia 5.9%
United States 5.9%
India 4.7%
See More Countries 69.1%
Main Suppliers
(% of Imports)
2010
United States 9.4%
China 9.2%
Germany 7.6%
Italy 5.6%
Saudi Arabia 4.0%
See More Countries 64.2%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 11.2%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 8.6%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 6.8%
Mineral or chemical nitrogenous fertilizers (excl....Mineral or chemical nitrogenous fertilizers (excl. those in pellet or similar forms, or in packages with a gross weight of <= 10 kg) 4.1%
Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form 3.9%
See More Products 65.4%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 6.9%
Wheat and meslinWheat and meslin 4.1%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 3.4%
Articles of iron or steel, n.e.s. (excl. cast...Articles of iron or steel, n.e.s. (excl. cast articles) 2.6%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 2.5%
See More Products 80.4%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Finance
Ministry of Trade and Industry 
Statistical Office
Central Agency for Public Mobilization and Statistics.
Central Bank
Central Bank
Stock Exchange
Cairo and Alexandria Stock Exchange
Search Engines
Egypt Search
EgyptSites.com
Egyptoo.com
Economic Portals
Zawya: website containing economic information on the Middle East.
Alibaba: Economic portal on the Middle East.

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Political Outline

Executive Power
The president is the head of state. He is elected by universal suffrage for a 6-year term of office (no limit for extension). He appoints the Prime Minister who must be approved by a confidence vote in the parliament. The President also appoints the head of the Council of Ministers. He can dissolve the Assembly and rule by decree. He holds almost total power.
Legislative Power
The legislative power is bicameral. The Parliament is formed by the People's Assembly (the lower house) which has 454 members (of which 444 are elected by universal suffrage and 10 are nominated by the President for a 5-year term) and the Advisory Council (the upper house) which plays only an advisory role and which has 264 members (of which 176 are elected by universal suffrage and 88 appointed by the president for a 6-year term). The president can dissolve the People's Assembly only if he has the support of the people during a referendum.
Main Political Parties
The multi-party system was restored in 1976 by the then president Sadate. However, in practice it is the ruling National Democratic Party (NDP) which completely dominates the political arena. The Muslim brothers, a brotherhood created in 1928 by Hassan El Banna is the main opposition party of the country. They were banned but in spite of it, they were able to win 88 seats in the People's Assembly in the 2005 elections. The other opposition parties like Wafd, El-Ghad or the Nasserian Party are minority parties and were nearly wiped out in the 2005 elections.
Current Political Leaders
Vice-President: Vacant (constitution suspended since 13 February 2011)
Prime Minister: Kamal Ganzouri (since 24 November 2011)
Next Election Dates
People's Assembly: November-December 2015
Advisory Council: in 2013
 

Indicator of Freedom of the Press

World Rank:
127/178
Evolution:
16 places up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Not Free
Political Freedom:
6/7
Civil Liberties:
5/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012