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Egypt vs. Israel

Economy

EgyptIsrael
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.
"Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset by tourism and other service exports, as well as significant foreign investment inflows.

Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.

Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.

Income inequality and high housing and commodity prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries, and there is a broad perception among the public that a small number of ""tycoons"" have a cartel-like grip over the major parts of the economy. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact the well-being of younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018 with consumers benefitting from low inflation and a strong currency.

In the long term, Israel faces structural issues, including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.
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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
$315.6 billion (2017 est.)
$306.1 billion (2016 est.)
$294.5 billion (2015 est.)
note: data are in 2017 dollars
GDP - real growth rate4.1% (2017 est.)
4.3% (2016 est.)
4.4% (2015 est.)
3.1% (2017 est.)
4% (2016 est.)
2.6% (2015 est.)
GDP - per capita (PPP)$13,000 (2017 est.)
$12,800 (2016 est.)
$12,400 (2015 est.)
note: data are in 2017 dollars
$36,200 (2017 est.)
$35,800 (2016 est.)
$35,200 (2015 est.)
note: data are in 2017 dollars
GDP - composition by sectoragriculture: 11.9%
industry: 33.1%
services: 55.7% (2017 est.)
agriculture: 2.3%
industry: 26.6%
services: 69.5% (2017 est.)
Population below poverty line25.2% (2011 est.)
22%
note: Israel's poverty line is $7.30 per person per day (2014 est.)
Household income or consumption by percentage sharelowest 10%: 4%
highest 10%: 26.6% (2008)
lowest 10%: 1.7%
highest 10%: 31.3% (2010)
Inflation rate (consumer prices)23.5% (2017 est.)
10.2% (2016 est.)
0.2% (2017 est.)
-0.5% (2016 est.)
Labor force29.95 million (2017 est.)
4.021 million (2017 est.)
Labor force - by occupationagriculture: 29.2%
industry: 23.5%
services: 47.3% (2013 est.)
agriculture: 1.1%
industry: 17.3%
services: 81.6% (2015)
Unemployment rate12.2% (2017 est.)
12.7% (2016 est.)
4.3% (2017 est.)
4.8% (2016 est.)
Distribution of family income - Gini index30.8 (2008)
32.1 (2005)
42.8 (2013)
39.2 (2008)
Budgetrevenues: $35.54 billion
expenditures: $55.09 billion (2017 est.)
revenues: $92.82 billion
expenditures: $102.1 billion (2017 est.)
Industriestextiles, food processing, tourism, chemicals, pharmaceuticals, hydrocarbons, construction, cement, metals, light manufactures
high-technology products (including aviation, communications, computer-aided design and manufactures, medical electronics, fiber optics), wood and paper products, potash and phosphates, food, beverages, and tobacco, caustic soda, cement, pharmaceuticals, construction, metal products, chemical products, plastics, cut diamonds, textiles, footwear
Industrial production growth rate3.5% (2017 est.)
4% (2017 est.)
Agriculture - productscotton, rice, corn, wheat, beans, fruits, vegetables; cattle, water buffalo, sheep, goats
citrus, vegetables, cotton; beef, poultry, dairy products
Exports$23.53 billion (2017 est.)
$20.02 billion (2016 est.)
$60.6 billion (2017 est.)
$56.17 billion (2016 est.)
Exports - commoditiescrude oil and petroleum products, fruits and vegetables, cotton, textiles, metal products, chemicals, processed food
machinery and equipment, software, cut diamonds, agricultural products, chemicals, textiles and apparel
Exports - partnersUAE 12.5%, Saudi Arabia 7.7%, Italy 6.5%, Turkey 6.3%, UK 4.6%, US 4.5% (2016)
US 29.3%, Hong Kong 7.4%, UK 6.5%, China 5.5%, Belgium 4.2% (2016)
Imports$53.02 billion (2017 est.)
$56.71 billion (2016 est.)
$66.76 billion (2017 est.)
$63.54 billion (2016 est.)
Imports - commoditiesmachinery and equipment, foodstuffs, chemicals, wood products, fuels
raw materials, military equipment, investment goods, rough diamonds, fuels, grain, consumer goods
Imports - partnersChina 12.9%, Germany 8.7%, US 5.3%, Italy 4.5%, Turkey 4.3%, Saudi Arabia 4.1% (2016)
US 12.2%, China 8.9%, Switzerland 6.4%, Germany 6.1%, Belgium 5.9%, UK 5.5%, Netherlands 4.1%, Italy 4% (2016)
Debt - external$76.31 billion (31 December 2017 est.)
$62.38 billion (31 December 2016 est.)
$93.02 billion (31 December 2017 est.)
$87.96 billion (31 December 2016 est.)
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.)
new Israeli shekels (ILS) per US dollar -
3.606 (2017 est.)
3.8406 (2016 est.)
3.8406 (2015 est.)
3.8869 (2014 est.)
3.5779 (2013 est.)
Fiscal year1 July - 30 June
calendar year
Public debt104.4% of GDP (2017 est.)
111.2% of GDP (2016 est.)
note: data cover central government debt and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are sold at public auctions
59.5% of GDP (2017 est.)
60.7% of GDP (2016 est.)
Reserves of foreign exchange and gold$34.02 billion (31 December 2017 est.)
$23.2 billion (31 December 2016 est.)
$113 billion (31 December 2017 est.)
$95.45 billion (31 December 2016 est.)
Current Account Balance-$19.83 billion (2017 est.)
-$19.83 billion (2016 est.)
$14.28 billion (2017 est.)
$11.57 billion (2016 est.)
GDP (official exchange rate)$332.3 billion (2016 est.)
$348 billion (2016 est.)
Stock of direct foreign investment - at home$103.6 billion (31 December 2017 est.)
$97.14 billion (31 December 2016 est.)
$119.4 billion (31 December 2017 est.)
$107.3 billion (31 December 2016 est.)
Stock of direct foreign investment - abroad$7.547 billion (31 December 2017 est.)
$7.257 billion (31 December 2016 est.)
$106.9 billion (31 December 2017 est.)
$98.11 billion (31 December 2016 est.)
Market value of publicly traded shares$55.19 billion (31 December 2015 est.)
$70.08 billion (31 December 2014 est.)
$61.63 billion (31 December 2013 est.)
$243.9 billion (31 December 2015 est.)
$200.5 billion (31 December 2014 est.)
$203.3 billion (31 December 2013 est.)
Central bank discount rate9.75% (30 October 2014)
8.75% (5 December 2013)
0.1% (15 December 2015)
0.25% (31 December 2014)
Commercial bank prime lending rate19.5% (31 December 2017 est.)
13.6% (31 December 2016 est.)
3.3% (31 December 2017 est.)
3.42% (31 December 2016 est.)
Stock of domestic credit$194.1 billion (31 December 2017 est.)
$178.7 billion (31 December 2016 est.)
$280.8 billion (31 December 2017 est.)
$257.5 billion (31 December 2016 est.)
Stock of narrow money$43.56 billion (31 December 2017 est.)
$34.51 billion (31 December 2016 est.)
$98.28 billion (31 December 2017 est.)
$79.58 billion (31 December 2016 est.)
Stock of broad money$196.6 billion (31 December 2017 est.)
$146.6 billion (31 December 2016 est.)
$223.1 billion (31 December 2017 est.)
$189 billion (31 December 2016 est.)
Taxes and other revenues14.7% of GDP (2016 est.)
26.7% of GDP (2017 est.)
Budget surplus (+) or deficit (-)-9.8% of GDP (2016 est.)
-2.7% of GDP (2017 est.)
Unemployment, youth ages 15-24total: 31.3%
male: 28.4%
female: 37.6% (2015 est.)
total: 8.6%
male: 8.2%
female: 9.1% (2016 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: 55.4%
government consumption: 22%
investment in fixed capital: 20.5%
investment in inventories: 0.2%
exports of goods and services: 29.8%
imports of goods and services: -27.9% (2017 est.)
Gross national saving9.7% of GDP (2017 est.)
9.1% of GDP (2016 est.)
10.7% of GDP (2015 est.)
24.2% of GDP (2017 est.)
24.1% of GDP (2016 est.)
24.6% of GDP (2015 est.)

Source: CIA Factbook