Egypt Economy Profile 2008

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. 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'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. 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% of GDP in 2007 - 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 (purchasing power parity)

$405.4 billion (2007 est.)

GDP (official exchange rate)

$127.9 billion (2007 est.)

GDP - real growth rate

7.1% (2007 est.)

GDP - per capita (PPP)

$5,000 (2007 est.)

GDP - composition by sector

agriculture: 13.8%
industry: 38.1%
services: 48% (2007 est.)

Population below poverty line

20% (2005 est.)

Labor force

22.1 million (2007 est.)

Labor force - by occupation

agriculture: 32%
industry: 17%
services: 51% (2001 est.)

Unemployment rate

9.1% (2007 est.)

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)

Investment (gross fixed)

21.2% of GDP (2007 est.)

Budget

revenues: $35.05 billion
expenditures: $44.83 billion (2007 est.)

Public debt

105.8% of GDP (2007 est.)

Inflation rate (consumer prices)

9.5% (2007 est.)

Central bank discount rate

9% (31 December 2007)

Commercial bank prime lending rate

12.51% (31 December 2007)

Stock of money

$27.6 billion (31 December 2007)

Stock of quasi money

$102.6 billion (31 December 2007)

Stock of domestic credit

$113.9 billion (31 December 2007)

Industries

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

Industrial production growth rate

7.5% (2007 est.)

Electricity - production

109.1 billion kWh (2006 est.)

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 - imports

140,000 bbl/day (2005)

Oil - exports

204,700 bbl/day (2005 est.)

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.)

Current Account Balance

$500.9 million (2007 est.)

Agriculture - products

cotton, rice, corn, wheat, beans, fruits, vegetables; cattle, water buffalo, sheep, goats

Exports

$24.45 billion f.o.b. (2007 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

$44.95 billion f.o.b. (2007 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)

Reserves of foreign exchange and gold

$31.37 billion (31 December 2007 est.)

Debt - external

$29.2 billion (30 June 2007)

Stock of direct foreign investment - at home

$48.46 billion (2007 est.)

Stock of direct foreign investment - abroad

$1.295 billion (2007 est.)

Market value of publicly traded shares

$93.48 billion (2006)

Economic aid - recipient

ODA, $925.9 million (2005)

Currency (code)

Egyptian pound (EGP)

Exchange rates

Egyptian pounds (EGP) per US dollar - 5.67 (2007), 5.725 (2006), 5.78 (2005), 6.1962 (2004), 5.8509 (2003)

Fiscal year

1 July - 30 June