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Egypt vs. Gaza Strip

Economy

EgyptGaza Strip
Economy - overviewOccupying 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, 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 2015-16, 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.
Israeli security measures and Israeli-Palestinian violence continue to degrade economic conditions in the Gaza Strip, the smaller of the two areas comprising the Palestinian territories. Israeli-imposed border controls became more restrictive after HAMAS seized control of the territory in June 2007. They have produced high unemployment, elevated poverty rates, and a sharp contraction of the private sector, which had relied primarily on export markets.

Egypt’s ongoing crackdown on the Gaza Strip’s extensive tunnel-based smuggling network has exacerbated fuel, construction material, and consumer goods shortages in the territory. The 51-day conflict in July 2014 that HAMAS and other Gaza-based militant groups fought with Israel further depressed the Gaza Strip’s already aid-dependent economy. Donor support for reconstruction and relaxed Israeli import restrictions in 2014 and 2015 have fallen short of postconflict needs, with almost 100,000 people remaining internally displaced because their homes have yet to be rebuilt or repaired.
GDP (purchasing power parity)$1.199 trillion (2017 est.)
$1.152 trillion (2016 est.)
$1.104 trillion (2015 est.)
note: data are in 2017 dollars
see entry for the West Bank
GDP - real growth rate4.1% (2017 est.)
4.3% (2016 est.)
4.4% (2015 est.)
-15.2% (2014 est.)
5.6% (2013)
7% (2012)
note: excludes the West Bank
GDP - per capita (PPP)$13,000 (2017 est.)
$12,800 (2016 est.)
$12,400 (2015 est.)
note: data are in 2017 dollars
see entry for the the West Bank
GDP - composition by sectoragriculture: 11.9%
industry: 33.1%
services: 55.7% (2017 est.)
agriculture: 3%
industry: 21.1%
services: 62.5%
note: data exclude the West Bank (2017 est.)
Population below poverty line25.2% (2011 est.)
30%
note: data exclude the West Bank (2011 est.)
Inflation rate (consumer prices)23.5% (2017 est.)
10.2% (2016 est.)
0.8% (2017 est.)
-0.2% (2016 est.)
note: 2.9% excludes the West Bank
Labor force29.95 million (2017 est.)
1.24 million
note: excludes the West Bank (2017 est.)
Labor force - by occupationagriculture: 29.2%
industry: 23.5%
services: 47.3% (2013 est.)
agriculture: 5.2%
industry: 10%
services: 84.8%
note: data exclude the West Bank (2015 est.)
Unemployment rate12.2% (2017 est.)
12.7% (2016 est.)
26.7% (2017 est.)
26.9% (2016 est.)
note: data exclude the West Bank
Budgetrevenues: $35.54 billion
expenditures: $55.09 billion (2017 est.)
see entry for the West Bank (2017 est.)
Industriestextiles, food processing, tourism, chemicals, pharmaceuticals, hydrocarbons, construction, cement, metals, light manufactures
textiles, food processing, furniture
Industrial production growth rate3.5% (2017 est.)
4%
note: see entry for the West Bank (2017 est.)
Agriculture - productscotton, rice, corn, wheat, beans, fruits, vegetables; cattle, water buffalo, sheep, goats
olives, fruit, vegetables, flowers; beef, dairy products
Exports$23.53 billion (2017 est.)
$20.02 billion (2016 est.)
$1.955 billion (2017 est.)
$1.827 billion (2016 est.)
Exports - commoditiescrude oil and petroleum products, fruits and vegetables, cotton, textiles, metal products, chemicals, processed food
strawberries, carnations, vegetables, fish (small and irregular shipments, as permitted to transit the Israeli-controlled Kerem Shalom crossing)
Imports$53.02 billion (2017 est.)
$56.71 billion (2016 est.)
see entry for the West Bank
Imports - commoditiesmachinery and equipment, foodstuffs, chemicals, wood products, fuels
food, consumer goods, fuel
Debt - external$76.31 billion (31 December 2017 est.)
$62.38 billion (31 December 2016 est.)
see entry for the West Bank
Exchange ratesEgyptian pounds (EGP) per US dollar -
18.05 (2017 est.)
10.07 (2016 est.)
10.07 (2015 est.)
7.7133 (2014 est.)
7.08 (2013 est.)
see entry for the West Bank
Fiscal year1 July - 30 June
calendar year
Reserves of foreign exchange and gold$34.02 billion (31 December 2017 est.)
$23.2 billion (31 December 2016 est.)
$312.8 million (31 December 2016 est.)
$583 million (31 December 2015 est.)
Current Account Balance-$19.83 billion (2017 est.)
-$19.83 billion (2016 est.)
-$1.444 billion (2017 est.)
-$1.348 billion (2016 est.)
note: excludes the West Bank
GDP (official exchange rate)$332.3 billion (2016 est.)
$2.938 billion (2014 est.)
note: excludes the West Bank
Commercial bank prime lending rate19.5% (31 December 2017 est.)
13.6% (31 December 2016 est.)
see entry for the West Bank
Stock of domestic credit$194.1 billion (31 December 2017 est.)
$178.7 billion (31 December 2016 est.)
$2.041 billion (31 December 2017 est.)
$1.712 billion (31 December 2016 est.)
Stock of narrow money$43.56 billion (31 December 2017 est.)
$34.51 billion (31 December 2016 est.)
see entry for the West Bank
Stock of broad money$196.6 billion (31 December 2017 est.)
$146.6 billion (31 December 2016 est.)
$2.901 billion (31 December 2017 est.)
$2.538 billion (31 December 2016 est.)
Unemployment, youth ages 15-24total: 31.3%
male: 28.4%
female: 37.6% (2015 est.)
total: 40.7%
male: 36.4%
female: 60.8%
note: includes the West Bank (2015 est.)
GDP - composition, by end usehousehold consumption: 79.2%
government consumption: 12.2%
investment in fixed capital: 17.3%
investment in inventories: 1.3%
exports of goods and services: 13.5%
imports of goods and services: -23.5% (2017 est.)
household consumption: 91.3%
government consumption: 26.7%
investment in fixed capital: 23%
investment in inventories: 0%
exports of goods and services: 20%
imports of goods and services: -61%
note: data exclude the West Bank (2017 est.)

Source: CIA Factbook