EGYPT Economy

Economy - overview:

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 in 2001-03. Egyptian officials in late 2003 and early 2004 proposed new privatization and customs reform measures, but the government is likely to pursue these initiatives cautiously and gradually to avoid a public backlash over potential inflation or layoffs associated with the 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 the government continues to influence the official exchange rate offered 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. 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.

GDP:

purchasing power parity - $294.3 billion (2003 est.)

GDP - real growth rate:

2.8% (2003 est.)

GDP - per capita:

Purchasing power parity - $3,900 (2003 est.)

GDP - composition by sector:

agriculture: 17%
industry: 33%
services: 50% (2003)

Population below poverty line:

16.7% (2000 est.)

Household income or consumption by percentage share:

lowest 10%: 3.7%
highest 10%: 29.5% (1999)

Distribution of family income - Gini index:

34.4 (1999)

Inflation rate (consumer prices):

4.5% (2003 est.)

Labor force:

 20.1 million (2003 est.)

Labor force - by occupation:

 Agriculture 32%, industry 17%, services 51% (2001 est.)

Unemployment rate:

 9.9% (2003 est.)

Budget:

Revenues: $14 billion
expenditures: $18.1 billion, including capital expenditures of $2.7 billion (2003 est.)

Industries:

 textiles, food processing, tourism, chemicals, hydrocarbons, construction, cement, metals

Industrial production growth rate:

 1.5% (2003 est.)

Electricity - production:

 75.23 billion kWh (2001)

Electricity - production by source:

 fossil fuel: 81%
hydro: 19%
other: 0% (2001)
nuclear: 0%

Electricity - consumption:

69.96 billion kWh (2001)

Electricity - exports:

0 kWh (2001)

Electricity - imports:

0 kWh (2001)

Oil - production:

816,900 bbl/day (2001 est.)

Oil - consumption:

562,000 bbl/day (2001 est.)

Oil - exports:

NA

Oil - imports:

NA

Oil - proved reserves:

3.308 billion bbl (1 January 2002)

Natural gas - production:

21.2 billion cu m (2001 est.)

Natural gas - consumption:

21.2 billion cu m (2001 est.)

Natural gas - exports:

0 cu m (2001 est.)

Natural gas - imports:

0 cu m (2001 est.)

Natural gas - proved reserves:

1.264 trillion cu m (1 January 2002)

Agriculture - products:

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

Exports:

$8.759 billion f.o.b. (2003 est.)

Exports - commodities:

crude oil and petroleum products, cotton, textiles, metal products, chemicals

Exports - partners:

US 18.5%, Italy 13.8%, UK 8.5%, France 4% (2002)

Imports:

$14.75 billion f.o.b. (2003 est.)

Imports - commodities:

machinery and equipment, foodstuffs, chemicals, wood products, fuels

Imports - partners:

US 16.1%, Germany 7.5%, Italy 6.4%, France 6.2%, China 4.8% (2002)

Debt - external:

$30 billion (2003 est.)

Economic aid - recipient:

ODA, $1.2 billion (2001)

Currency:

Egyptian pound (EGP)

Currency code:

EGP

Exchange rates:

Egyptian pounds per US dollar - 5.85 (2003), 4.5 (2002), 3.97 (2001), 3.47 (2000), 3.4 (1999)

Fiscal year:

1 July - 30 June

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