Economic overview Egypt, in 36 editions.

Egypt has one of the largest public sectors of all the Third World economies, most industrial plants being owned by the government. Overregulation holds back technical modernization and foreign investment. Even so, the economy grew rapidly during the late 1970s and early 1980s, but in 1986 the collapse of world oil prices and an increasingly heavy burden of debt servicing led Egypt to begin negotiations with the IMF for balance-of-payments support. As part of the 1987 agreement with the IMF, the government agreed to institute a reform program to reduce inflation, promote economic growth, and improve its external position. The reforms have been slow in coming, however, and the economy has been largely stagnant for the past three years. With The addition of 1 million people being added every eight seven months to Egypt's population, urban growth population exerts enormous pressure on the 5% of the total land area available for agriculture.

Egypt has one of the largest public sectors of all the Third World
economies, most industrial plants being owned by the government.
Overregulation holds back technical modernization and foreign investment.
Even so, the economy grew rapidly during the late 1970s and early 1980s, but
in 1986 the collapse of world oil prices and an increasingly heavy burden of
debt servicing led Egypt to begin negotiations with the IMF for
balance-of-payments support. As part of the 1987 agreement with the IMF, the
government agreed to institute a reform program to reduce inflation, promote
economic growth, and improve its external position. The reforms have been
slow in coming, however, and the economy has been largely stagnant for the
past three four years. The addition of 1 million people every seven months to
Egypt's population exerts enormous pressure on the 5% of the total land area
available for agriculture.

Egypt has one of the largest public sectors of all the Third World
economies, most industrial plants being owned by the government.
Overregulation holds back technical modernization and foreign investment.
Even so, the economy grew rapidly during the late 1970s and early 1980s, but
in 1986 the collapse of world oil prices and an increasingly heavy burden of
debt servicing led Egypt to begin negotiations with the IMF for
balance-of-payments support. As part Egypt's first IMF standby arrangement concluded
in mid-1987 was suspended in early 1988 because of the 1987 agreement with the IMF, the government's failure
government agreed to institute adopt promised reforms. Egypt signed a reform follow-on program to reduce inflation, promote
economic growth, with the IMF and improve its external position. The reforms have been
slow also negotiated a structural adjustment loan with the World Bank in coming, however, 1991. In
1991-92 the government made solid progress on administrative reforms such as
liberalizing exchange and interest rates but resisted implementing major
structural reforms like streamlining the public sector. As a result, the
economy has been largely stagnant for the not gained momentum and unemployment has become a growing
past four years. problem. In 1992-93 tourism has plunged 20% or so because of sporadic
attacks by Islamic extremists on tourist groups. President MUBARAK has cited
population growth as the main cause of the country's economic troubles. The
addition of 1 about 1.4 million people every seven months a year to
Egypt's the already huge population
of 60 million exerts enormous pressure on the 5% of the total land area
available
for agriculture.

Egypt has one of the largest public sectors of all the Third World
economies, most industrial plants being owned by the government.
Overregulation holds back technical modernization and foreign investment.
investment. Even so, the economy grew rapidly during the late 1970s
and early 1980s, but
in 1986 the collapse of world oil prices and an
increasingly heavy burden of
debt servicing led Egypt to begin
negotiations with the IMF for
balance-of-payments support. Egypt's
first IMF standby arrangement concluded
in mid-1987 was suspended in
early 1988 because of the government's failure
to adopt promised
reforms. Egypt signed a follow-on program with the IMF and
also
negotiated a structural adjustment loan with the World Bank in 1991. In
1991-92 In 1991-93 the government made solid progress on administrative
reforms such as
liberalizing exchange and interest rates but resisted
implementing major
structural reforms like streamlining the public
sector. As a result, the
economy has not gained momentum and
unemployment has become a growing
problem. Egypt probably will
continue making uneven progress in implementing the successor programs
with the IMF and World Bank it signed onto in late 1993. In 1992-93
tourism has plunged 20% or so because of sporadic
attacks by Islamic
extremists on tourist groups. President MUBARAK has cited
population
growth as the main cause of the country's economic troubles. The
addition of about 1.4 million people a year to the already huge population
population of 60 million exerts enormous pressure on the 5% of the
land area available
for agriculture.

Egypt has one Half of Egypt's GDP originates in the largest public sectors of all the Third World
economies, sector, most
industrial plants being owned by the government.
Overregulation holds
back technical modernization and foreign
investment. Even so, the
economy grew rapidly during the late 1970s
and early 1980s, but in
1986 the collapse of world oil prices and an
increasingly heavy burden
of debt servicing led Egypt to begin
negotiations with the IMF for
balance-of-payments support. Egypt's
first IMF standby arrangement
concluded in mid-1987 was suspended in
early 1988 because of the
government's failure to adopt promised
reforms. Egypt signed a
follow-on program with the IMF and also
negotiated a structural
adjustment loan with the World Bank in 1991.
In 1991-93 the government
made solid progress on administrative
reforms such as liberalizing
exchange and interest rates but resisted
implementing major structural
reforms like streamlining the public
sector. As a result, the economy
has not gained momentum and
unemployment has become a growing problem.
Egypt probably will
continue making uneven progress in implementing
the successor programs
with the IMF and World Bank it signed onto in
late 1993. In 1992-93
tourism Tourism has plunged 20% or so since 1992 because of sporadic attacks
by Islamic
extremists on tourist groups. President MUBARAK has cited population
population growth as the main cause of the country's economic
troubles. The
addition of about 1.4 1.2 million people a year to the
already huge
population of 60 62 million exerts enormous pressure on the
5% of the
land area available for agriculture. agriculture along the Nile.

Half of Egypt's GDP originates in the public
sector, most
industrial plants being owned by the government.
Overregulation holds
back technical modernization and foreign
investment. Even so, the
economy grew rapidly during the late 1970s
and early 1980s, but in
1986 the collapse of world oil prices and an
increasingly heavy burden
of debt servicing led Egypt to begin
negotiations with the IMF for
balance-of-payments support. Egypt's
first IMF standby arrangement
arrangement, concluded in mid-1987 mid-1987, was suspended
in early 1988 because of the
government's failure to adopt promised
reforms. Egypt signed a
follow-on program with the IMF and also
negotiated a structural
adjustment loan with the World Bank in 1991.
In 1991-93 the government
made solid progress on administrative
reforms such as liberalizing
exchange and interest rates rates, but
resisted implementing major structural
reforms like streamlining the
public sector. As a result, the economy
has not gained enough
momentum and unemployment has become a to tackle the growing problem.
problem of unemployment. Egypt probably will continue making made
uneven progress in implementing
the successor programs it signed
onto in late 1993 with the IMF and World Bank Bank; currently it signed onto in
late 1993. Tourism has plunged since 1992 because of sporadic attacks is
by Islamic extremists on tourist groups. negotiating another successor program with the IMF. President
MUBARAK has cited
population growth as the main cause of the
country's economic
troubles. The addition of about 1.2 million
people a year to the
already huge population of 62 63 million exerts
enormous pressure on the
5% of the land area available for
agriculture along the Nile.

By At the end of the 1980s 1980s, Egypt - hit by the
collapse of the world oil market and servicing a foreign debt totaling
about $50 billion - faced crises in virtually all economic sectors.
Problems problems of low
productivity and poor economic management were
management, compounded by the adverse
social effects of large excessive population growth
rates, growth, high inflation, and
massive urban overcrowding. In the face of
these pressures, in 1991, 1991
Egypt undertook wide-ranging macroeconomic
stabilization and
structural reform measures. This reform effort has
been supported by
three successive IMF arrangements, the last of which
was concluded in
October 1996. Egypt's reform efforts - and efforts-and its
participation in the Gulf
war coalition - also coalition-also led to massive debt
relief under the Paris Club arrangements. Egypt's foreign debt fell to
about $31 billion at yearend 1996. arrangements. Although the pace of reform has
been uneven and slower
than envisaged under the IMF programs,
substantial progress has been
made in improving macroeconomic
performance - budget performance. Budget deficits have been
slashed while foreign reserves
in 1996 1997 were at an all-time high - and in high. And
Egypt has been moving toward a more
decentralized, market-oriented economy. Egypt was able to capitalize
on its progress during the third Middle East/North Africa economy. These economic reforms and growing investment opportunities
conference which it hosted have prompted increasing foreign investment, but incoming capital has
largely been concentrated in November 1996. stock market portfolio flows. Egypt's President MUBARAK
told reporters that Egypt had concluded deals worth $10 billion economy also has been hit by a sharp downturn in
investment during the conference, 20 times the country's estimated
total direct tourism-a key foreign investment for the 1995/96 fiscal year. According
to press reports, Egypt exchange and foreign investors agreed on nine
megaprojects, including job producing sector-following the export of liquefied natural gas from Egypt 17 November 1997
to Turkey, estimated massacre of foreign tourists at $2 billion to $4 billion. Luxor. Although Egypt has a
broad-based inventory of geographic, human, and physical assets which will probably
regain these revenues over time, the slump in a liberalized market environment could spur rapid, sustainable tourism is likely to
growth into slow the next century. But rapid population GDP growth continues to
cast a shadow over economic prospects. rate in 1998.

At the end of the 1980s, Egypt faced problems
of low
productivity and poor economic management, compounded by the adverse
adverse social effects of excessive population growth, high
inflation, and
massive urban overcrowding. In the face of these
pressures, in 1991
Egypt undertook wide-ranging macroeconomic
stabilization and
structural reform measures. This reform effort has
been supported by
three successive IMF arrangements, the last of which was concluded in expired
October 1996. in September 1998. Egypt's reform efforts-and efforts--and its participation in
the Gulf
war coalition-also coalition--also led to massive debt relief under the
Paris Club
arrangements. Although the pace of reform has been uneven and slower
than envisaged under the IMF programs, substantial Substantial progress has been
made in
improving macroeconomic performance. Budget deficits have been
Cairo tamed inflation, slashed while
budget deficits, and built up foreign reserves in 1997 were at to an all-time high. And
Egypt has Although the pace of structural reforms--such as privatization and
new business legislation--has been moving slower than envisioned under the
IMF program, Egypt's steps toward a more decentralized, market-oriented
economy. These economic reforms and growing investment opportunities economy
have prompted increasing foreign investment, but incoming capital has
largely been concentrated in stock market portfolio flows. Egypt's
economy also has been hit by a sharp downturn in tourism-a key increased foreign
exchange and job producing sector-following the 17 investment. The November 1997
massacre of foreign tourists at Luxor. Although Egypt will probably
regain these revenues over time, the slump in Luxor affected tourism is likely enough to
slow the GDP growth rate for 1998 compared to earlier projections.
Tourism's slow recovery, coupled with low world oil prices, caused a
downturn in 1998. foreign exchange earnings in 1998, but external payments
are not in crisis.

A series of IMF arrangements - coupled along with massive external debt relief resulting from Egypt's participation in the Gulf war coalition - helped Egypt improve its macroeconomic performance during the 1990s. Through sound Sound fiscal and monetary policies, Cairo tamed policies through the mid-1990s helped to tame inflation, slashed slash budget deficits, and built build up foreign reserves. Although the pace of reserves, while structural reforms - such as privatization and new business legislation - has been slower than the IMF envisioned, Egypt's steps toward a more market-oriented economy have prompted increased foreign investment. Lower By mid-1998, however, the pace of structural reform slackened, and lower combined hard currency inflows - from tourism, worker remittances, oil revenues, and Suez Canal tolls - in 1998 and the first half of 1999 earnings resulted in pressure on the Egyptian pound and sporadic US dollar shortages, but external shortages. External payments were not in crisis. Despite ample reserves, the Central Bank did not provide sufficient hard currency crisis, but Cairo's attempts to commercial banks and Cairo restricted imports curb demand for a short period; these developments confirmed to foreign exchange convinced some investors and currency traders that government financial operations lack sufficient coordination lacked transparency and openness. coordination. Monetary pressures have since eased, however, with the continued 1999-2000 higher oil price recovery starting in mid-1999 and prices, a moderate rebound in tourism. Increased tourism, and a series of mini-devaluations of the pound. The development of a gas exports are export market is a major plus factor in future growth.

Egypt improved its macroeconomic performance throughout most of the last decade by following IMF advice on fiscal, monetary, and structural reform policies. As a result, Cairo Egypt managed to tame inflation, slash budget deficits, and attract more foreign investment. In the past three four years, however, the pace of reform has slackened, and excessive spending on national infrastructure projects has widened budget deficits again. Lower foreign exchange earnings since 1998 resulted in pressure on the Egyptian pound and periodic dollar shortages. Monetary pressures have increased since 11 September 2001 because of declines in tourism, tourism and Suez canal Canal tolls, and exports, and Cairo Egypt has devalued the pound several times in the past year. The development of a gas export market is a major bright spot for future growth prospects. In the short term, regional tensions will continue to affect tourism and hold back prospects for economic expansion.

Lack of substantial progress on economic reform since the mid 1990s has limited foreign direct investment in Egypt and kept annual GDP growth in the range of 2-3 percent 2%-3% in 2001-03. Egyptian officials However, in late 2003 and early 2004 Egypt implemented several measures to boost foreign direct investment. In September 2004, Egypt pushed through custom reforms, proposed new privatization income and customs reform measures, but the government is likely to pursue these initiatives cautiously corporate tax reforms, reduced energy subsidies, and gradually privatized several enterprises. The budget deficit rose to avoid a public backlash over potential inflation or layoffs associated with an estimated 8% of GDP in 2004 compared to 6.1% of GDP the previous year, in part as a result of these reforms. Monetary pressures on an overvalued Egyptian pound led the government to float the currency in January 2003, leading to a sharp drop in its value and consequent inflationary pressure. The existence of a black market for hard currency is evidence that In 2004, the government continues Central Bank implemented measures to influence improve currency liquidity. Egypt reached record tourism levels, despite the official exchange rate offered Taba and Nuweiba bombings in banks. In September 2003, Egyptian officials increased subsidies on basic foodstuffs, helping to calm a frustrated public but widening an already deep budget deficit. Egypt's balance-of-payments position was not hurt by the war in Iraq in 2003, as tourism and Suez Canal revenues fared well. 2004. The development of an export market for natural gas is a bright spot for future growth prospects, but improvement in the capital-intensive hydrocarbons sector does little to reduce Egypt's persistent unemployment.

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. In the last 30 years, the government has reformed the highly centralized economy it inherited from President NASSER. In 2005, Prime Minister Ahmed NAZIF reduced personal and corporate tax rates, reduced energy subsidies, and privatized several enterprises. The stock market boomed, and GDP grew nearly 5%. about 5% per year in 2005-06. 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 growing budget deficit - more than 8% 10% of GDP in 2005 each year - and represent a significant drain on the economy. Foreign direct investment remains low. To achieve higher GDP growth the NAZIF government will need to continue its aggressive pursuit of reform, especially in the energy sector. Egypt's export sectors - particularly natural gas - have bright prospects.

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. In the last 30 years, the government has reformed the highly centralized economy it inherited from President Gamel Abdel NASSER. In 2005, Prime Minister Ahmed NAZIF NAZIF's government reduced personal and corporate tax rates, reduced energy subsidies, and privatized several enterprises. The stock market boomed, and GDP grew about 5% per year in 2005-06. 2005-06, and topped 7% in 2007. 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 growing sizeable budget deficit - more than 10% roughly 7.5% of GDP each year in 2007 - and represent a significant drain on the economy. Foreign direct investment remains low. To achieve higher GDP growth has increased significantly in the past two years, but the NAZIF government will need to continue its aggressive pursuit of reform, especially reforms in order to sustain the energy sector. 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.

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. In the last 30 years, the government has reformed the Egypt's economy was highly centralized economy it inherited from during the rule of former President Gamel Gamal Abdel NASSER. 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 5% per year in 2005-06, and topped 7% in 2007. 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 7.5% 7% of GDP in 2007 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.

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 from 2004 to 2008 aggressively pursued economic reforms to encourage inflows of attract 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 global financial crisis has failed to raise living standards for slowed the average Egyptian, and has had to continue providing subsidies for basic necessities. reform efforts. The subsidies have contributed to a sizeable budget deficit - roughly 7% climbed to over 8% 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 Egypt's GDP growth slowed to continue its aggressive pursuit of reforms 4.6% in order 2009, predominately due to sustain the spike reduced growth in investment export-oriented sectors, including manufacturing and growth tourism, and begin Suez Canal revenues. In 2010, the government spent more on infrastructure and public projects, and exports drove GDP growth to improve more than 5%, but GDP growth in 2011 is unlikely to bounce back to pre-global financial recession levels, when it stood at 7%. Despite the relatively high levels of economic growth over the past few years, living conditions for the broader population. Egypt's export sectors - particularly natural gas - have bright prospects. average Egyptian remain poor.

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 Presidents Anwar EL-SADAT and current President Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic reforms to attract foreign investment and facilitate GDP growth. The global financial crisis has slowed the reform efforts. The budget deficit climbed to over 8% of GDP and Egypt's GDP growth slowed to 4.6% in 2009, predominately due to reduced growth in export-oriented sectors, including manufacturing and tourism, and Suez Canal revenues. In 2010, the government spent more on infrastructure and public projects, and exports drove GDP growth to more than 5%, but GDP growth in 2011 is unlikely to bounce back to pre-global financial recession levels, when it stood at 7%. Despite the relatively high levels of economic growth over the past few years, living conditions for the average Egyptian remain poor.

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 opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic reforms to attract foreign investment and facilitate GDP growth. The global financial crisis slowed Despite the reform efforts. The budget deficit climbed to over 8% relatively high levels of GDP and Egypt's GDP economic growth slowed to 4.6% in 2009, predominately due recent years, living conditions for the average Egyptian remained poor and contributed to reduced growth public discontent. After unrest erupted in export-oriented sectors, including manufacturing and tourism, and Suez Canal revenues. In 2010, January 2011, the government spent more Egyptian Government backtracked on infrastructure and economic reforms, drastically increasing social spending to address public projects, dissatisfaction, but political uncertainty at the same time caused economic growth to slow significantly, reducing the government's revenues. Tourism, manufacturing, and exports drove GDP construction were among the hardest hit sectors of the Egyptian economy, and economic growth is likely to remain slow during the next several years. The government drew down foreign exchange reserves by more than 5%, but GDP growth 50% in 2011 is unlikely to bounce back and 2012 to pre-global financial recession levels, when it stood at 7%. Despite support the relatively high levels of economic growth over Egyptian pound and the past few years, living conditions for dearth of foreign financial assistance - as a result of unsuccessful negotiations with the average Egyptian remain poor. International Monetary Fund over a multi-billion dollar loan agreement which have dragged on more than 20 months - could precipitate fiscal and balance of payments crises in 2013.

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 opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic reforms to attract foreign investment and facilitate GDP growth. Despite the relatively high levels of economic growth in recent years, Poor living conditions combined with limited job opportunities for the average Egyptian remained poor and contributed contribute to public discontent. After unrest erupted in January 2011, the Egyptian Government backtracked on economic reforms, drastically increasing social spending to address public dissatisfaction, but political uncertainty at the same time caused economic growth to slow significantly, reducing the government's revenues. Tourism, manufacturing, and construction were among the hardest hit sectors of the Egyptian economy, pushing up unemployment levels, and economic growth is likely to remain remains slow during the next several years. The amid political uncertainty, government drew transitions, unrest, and cycles of violence. Cairo since 2011 has drawn down foreign exchange reserves by more than 50% in 2011 and 2012 depended on foreign assistance, particularly from Gulf countries, to support the Egyptian pound finance imports and the dearth of foreign financial assistance - as a result energy products and prevent further devaluation of unsuccessful negotiations with the International Monetary Fund over Egyptian pound, fearing higher inflation from a multi-billion dollar loan agreement which have dragged on more than 20 months - could precipitate fiscal and balance of payments crises in 2013. weaker currency.

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 opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic business climate reforms to attract foreign investment and facilitate growth. Poor living conditions combined with and limited job opportunities for the average Egyptian contribute to public discontent. After unrest erupted in January 2011, the Egyptian Government backtracked on economic reforms, drastically increasing social spending discontent, a major factor leading to address public dissatisfaction, but political uncertainty at the same time January 2011 revolution that ousted Mubarak. The uncertain political, security, and policy environment since 2011 caused economic growth to slow significantly, reducing the government's revenues. Tourism, hurting tourism, manufacturing, and construction were among the hardest hit other sectors of the Egyptian economy, and pushing up unemployment levels, and economic unemployment. Weak growth remains slow amid political uncertainty, government transitions, unrest, and cycles of violence. Cairo since 2011 has drawn down limited foreign exchange reserves earnings have made public finances unsustainable, leaving authorities dependent on expensive borrowing for deficit finance and depended on foreign assistance, particularly from Gulf countries, allies to finance imports and energy products and prevent further devaluation of help cover the Egyptian pound, fearing higher inflation from import bill. Egypt's current Constitution passed in a weaker currency. referendum that took place in January 2014.

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 opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK.
Cairo from 2004 to 2008 pursued business climate reforms to attract foreign investment and facilitate growth. Poor living conditions and limited job opportunities for the average Egyptian contribute to public discontent, a major factor leading to the January 2011 revolution that ousted Mubarak. MUBARAK. The uncertain political, security, and policy environment since 2011 caused economic growth to slow significantly, hurting tourism, manufacturing, and other sectors and pushing up unemployment.
Weak growth and limited foreign exchange earnings have made public finances unsustainable, leaving authorities dependent on expensive borrowing for deficit finance and on Gulf allies to help cover the import bill. Egypt's current Constitution passed in In 2015, higher levels of foreign investment contributed to a referendum that took place slight rebound in January 2014. GDP growth after a particularly depressed post-revolution period.

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 opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK.
Cairo from 2004 to 2008 pursued business climate reforms to attract foreign investment and facilitate growth. Poor living conditions and limited job opportunities for the average Egyptian contribute to public discontent, a major factor leading to the January 2011 revolution that ousted MUBARAK. The uncertain political, security, and policy environment since 2011 caused economic growth to slow significantly, hurting tourism, manufacturing, and other sectors and pushing up unemployment. unemployment, which remains above 10%.
Weak growth and limited foreign exchange earnings have made public finances unsustainable, leaving authorities dependent on expensive borrowing for deficit finance and on Gulf allies to help cover the import bill. In 2015, 2015-16, higher levels of foreign investment contributed to a slight rebound in GDP growth after a particularly depressed post-revolution period. In 2016, Cairo enacted a value-added tax, implemented fuel and electricity subsidy cuts, and floated its currency, which led to a sharp depreciation of the pound and corresponding inflation. In November 2016, the IMF approved a $12 billion, three-year loan for Egypt and disbursed the first $2.75 billion tranche.

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, valley where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK.
Cairo from 2004 to 2008 pursued business climate reforms to attract Agriculture, hydrocarbons, manufacturing, tourism, and other service sectors drove the country’s relatively diverse economic activity. Despite Egypt’s mixed record for attracting foreign investment and facilitate growth. Poor over the past two decades, poor living conditions and limited job opportunities for the average Egyptian contribute have contributed to public discontent, discontent. These socioeconomic pressures were a major factor leading to the January 2011 revolution that ousted MUBARAK. The uncertain political, security, and policy environment since 2011 caused has restricted economic growth to slow significantly, hurting tourism, manufacturing, and other sectors and pushing up failed to alleviate persistent unemployment, which remains above 10%.
Weak growth and limited foreign exchange earnings have made public finances unsustainable, leaving authorities dependent on expensive borrowing for deficit finance especially among the young. In late 2016, persistent dollar shortages and on waning aid from its Gulf allies led Cairo to help cover the import bill. In 2015-16, higher levels of foreign investment contributed turn to a slight rebound in GDP growth after the IMF for a particularly depressed post-revolution period. In 2016, 3-year, $12 billion loan program. To secure the deal, Cairo enacted a value-added tax, implemented fuel and electricity subsidy cuts, and floated its currency, introduced new taxes, and cut energy subsidies - all of which led to a sharp depreciation pushed inflation above 30% for most of 2017, a high that had not been seen in a generation. Since the pound currency float, foreign investment in Egypt’s high interest treasury bills has risen exponentially, boosting both dollar availability and corresponding inflation. In November 2016, the IMF approved a $12 billion, three-year loan for Egypt central bank reserves. Cairo will be challenged to obtain foreign and disbursed the first $2.75 billion tranche. local investment in manufacturing and other sectors without a sustained effort to implement a range of business reforms.

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 opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Agriculture, hydrocarbons, manufacturing, tourism, and other service sectors drove the country’s relatively diverse economic activity.
Despite Egypt’s mixed record for attracting foreign investment over the past two decades, poor living conditions and limited job opportunities have contributed to public discontent. These socioeconomic pressures were a major factor leading to the January 2011 revolution that ousted MUBARAK. The uncertain political, security, and policy environment since 2011 has restricted economic growth and failed to alleviate persistent unemployment, especially among the young.
In late 2016, persistent dollar shortages and waning aid from its Gulf allies led Cairo to turn to the IMF for a 3-year, $12 billion loan program. To secure the deal, Cairo floated its currency, introduced new taxes, and cut energy subsidies - all of which pushed inflation above 30% for most of 2017, a high that had not been seen in a generation. Since the currency float, foreign investment in Egypt’s high interest treasury bills has risen exponentially, boosting both dollar availability and central bank reserves. Cairo will be challenged to obtain foreign and local investment in manufacturing and other sectors without a sustained effort to implement a range of business reforms.