Egypt

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

When a new government came to power in July 2004, Egypt introduced an economic reform program. Consequently, prices 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 since within a year, growth recovered and reached 7.2% in 2008. Nevertheless, it is forecasted to be down to about 3% in 2009 and 2010. An increase in imports generated a significant deficit in the trade balance and the good performance of services does not balance a negative current balance in 2009. Moreover, these results are accompanied by a high rate of unemployment as well as a high inflation rate (11.7% in 2008 and 16.5% in 2009) that should fall to 8.6% in 2010.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	107.38	130.35	162.16	188.06	203.85e
GDP (constant prices, annual % change)	6.8	7.1e	7.2e	3.6e	3.0
GDP per capita (USD)	1,489	1,772e	2,161	2,457	2,611
Inflation rate (%)	4.2	11.0	11.7e	16.5	8.6
Unemployment rate (% of the labor force)	-	8.4	8.6	-	-
Current Account (billions USD)	0.87	1.86	0.89	-5.69e	-8.38
Current Account (in % of GDP)	0.8	1.4	0.5	-3.0e	-4.1

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

Agriculture contributes nearly 14% of the GDP and uses about a third of the active population. Warm climate and abundant water from the Nile enable several crops in a year. The main crops are cereals, cotton and sugar cane. Oil and gas and secondary sector contribute up to 41% of the GDP. In fact the tertiary sector is significant and represents approximately 50% of the Egyptian GDP. It is largely dominated by revenue from tourism and telecommunications.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	29.9	19.8	50.4
Value added (in % of GDP)	14.1	36.3	49.6
Value added (annual % change)	3.7	7.9	7.4

- last available data.

Monetary indicators	2002	2003	2004	2005	2006
Egyptian Pound (EGP) - Average annual exchange rate for 1 USD	4.50	5.85	6.20	5.78	5.73

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 58/100
Position:: mostly unfree
World Rank:: 97 out of 179
Regional Rank:: 10 out of 18

Distribution of Economic freedom in the world
Source: 2009 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

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 a free trade treaty with the United States. Its three primary partners for export are: the European Union which represents more than a third of trade, United States (10%) and Syria (5.7%). Its three primary partners for import are: the European Union (more than 12%), United States (12%) and China (10%). Egypt mainly exports mineral fuels and oils, cotton, iron and steel. It mainly imports consumer electronic goods and capital goods, nuclear reactors and nuclear-powered boilers, cereals, food products and chemical products. Import volume has doubled. It is double the exports which contributed to the reduction of the trade balance of this country.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	13,189	18,895	23,818	28,984	39,354
Exports of goods (millions USD)	8,987	12,320	16,073	20,546	24,455
Imports of services (millions USD)	6,474	8,020	10,508	11,569	14,342
Exports of services (millions USD)	11,073	14,197	14,643	16,135	19,943
Imports of goods and services (annual % change)	1.3	17.2	23.8	21.8	28.8
Exports of goods and services (annual % change)	13.8	25.3	20.2	21.3	23.3
Imports of goods and services (in % of GDP)	24.4	29.6	32.6	31.6	34.8
Exports of goods and services (in % of GDP)	21.8	28.2	30.3	29.9	30.3
Trade Balance (millions USD)	-4,201	-6,576	-7,745	-8,438	-14,900
Trade Balance (including service) (millions USD)	398	-399	-3,611	-3,873	-9,299
Foreign trade (in % of GDP)	46.2	57.8	63.0	61.5	65.1

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Italy	10.5%
India	6.6%
Netherlands	5.9%
Spain	5.4%
United States	4.8%
Saudi Arabia	4.6%
United Kingdom	3.5%
Japan	3.4%
Libya	3.1%
Turkey	3.0%
France	2.8%
Jordan	2.6%
South Korea	2.4%
Syria	2.1%
Sudan	2.1%
United Arab Emirates	2.0%
Belgium	1.9%
Nigeria	1.9%
Germany	1.7%
Lebanon	1.6%
See more countries	66.8%

Main suppliers (% of imports)	2008
United States	10.9%
China	8.4%
Saudi Arabia	6.1%
Germany	5.9%
Italy	5.6%
Russia	4.3%
Ukraine	3.7%
Japan	3.4%
India	3.4%
Kuwait	3.1%
Brazil	2.8%
United Kingdom	2.6%
France	2.4%
Turkey	2.2%
Argentina	2.0%
South Korea	2.0%
United Arab Emirates	1.7%
Switzerland	1.6%
Belgium	1.5%
Indonesia	1.5%
See more countries	63.0%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	44.3%
Iron and steelIron and steel	4.8%
Plastics and articles thereofPlastics and articles thereof	3.4%
Miscellaneous chemical productsMiscellaneous chemical products	3.1%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	3.1%
Copper and articles thereofCopper and articles thereof	2.6%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	2.6%
FertilizersFertilizers	2.5%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	2.5%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	2.2%
Aluminium and articles thereofAluminium and articles thereof	2.1%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	2.0%
Articles of iron or steelArticles of iron or steel	1.7%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	1.6%
CottonCotton	1.4%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	1.4%
Ceramic productsCeramic products	1.2%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.2%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	1.1%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	1.1%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.0%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.9%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.8%
CerealsCereals	0.8%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.7%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.7%
Pharmaceutical productsPharmaceutical products	0.6%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.6%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.5%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	0.5%
Special woven fabrics; tufted textile fabrics;...Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery	0.5%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.5%
Sugars and sugar confectionerySugars and sugar confectionery	0.5%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.5%
Commodities not specified according to kindCommodities not specified according to kind	0.5%
Nickel and articles thereofNickel and articles thereof	0.4%
Glass and glasswareGlass and glassware	0.4%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.3%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.3%
Rubber and articles thereofRubber and articles thereof	0.3%
Lac; gums, resins and other vegetable saps and...Lac; gums, resins and other vegetable saps and extracts	0.2%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
Man-made filamentsMan-made filaments	0.1%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.1%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.1%
See more products	41.3%

Main imports (% of imports)	2008
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	11.4%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	11.4%
Iron and steelIron and steel	9.5%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	6.0%
CerealsCereals	5.8%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	5.7%
Articles of iron or steelArticles of iron or steel	5.0%
Plastics and articles thereofPlastics and articles thereof	4.5%
Copper and articles thereofCopper and articles thereof	2.9%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	2.9%
Organic chemicalsOrganic chemicals	2.3%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	2.2%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.9%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.8%
Pharmaceutical productsPharmaceutical products	1.7%
Man-made filamentsMan-made filaments	1.4%
CottonCotton	1.3%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	1.3%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.3%
Ores, slag and ashOres, slag and ash	1.2%
Rubber and articles thereofRubber and articles thereof	1.2%
Meat and edible meat offalMeat and edible meat offal	1.2%
Sugars and sugar confectionerySugars and sugar confectionery	1.1%
Miscellaneous chemical productsMiscellaneous chemical products	1.1%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.9%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.8%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.7%
Man-made staple fibresMan-made staple fibres	0.7%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.7%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.6%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.6%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.6%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.6%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.5%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.5%
Aluminium and articles thereofAluminium and articles thereof	0.5%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.4%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.4%
Glass and glasswareGlass and glassware	0.4%
FertilizersFertilizers	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.3%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.3%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.3%
Ceramic productsCeramic products	0.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.1%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.1%
Zinc and articles thereofZinc and articles thereof	0.1%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.1%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.1%
See more products	55.9%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Finance
Ministry of Investment
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.

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: President: Mohammed Hosni Mubarak (since October 1981, re-elected for a fifth term of six years in the country's first multi-candidate elections in September 2005) – NDP
Prime Minister: Ahmed Nazif (since December 2005) – NDP
Next election dates: Presidential: in 2011
People's Assembly: November-December 2010
Advisory Council: in 2013

Indicator of freedom of the press

World Rank:: 146/173
Evolution:: Same rank in relation to 2007

Source: Worldwide Press Freedom Index 2008, Reporters Without Borders

Indicator of political freedom

Ranking:: Not Free
Political freedom:: 6/7
Civil liberties:: 6/7

Map of freedom 2007
Source: Freedom House

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