Economy - overview By the end of the 1980s Egypt - hit by the collapse of the world oilmarket and servicing a foreign debt totaling about $50 billion - faced crisesin virtually all economic sectors. Problems of low productivity and poor economicmanagement were compounded by the adverse social effects of large populationgrowth rates, high inflation, and massive urban overcrowding. In the faceof these pressures, in 1991, Egypt undertook wide-ranging macroeconomic stabilizationand structural reform measures. This reform effort has been supported by threesuccessive IMF arrangements, the last of which was concluded in October 1996.Egypt's reform efforts - and its participation in the Gulf war coalition -also led to massive debt relief under the Paris Club arrangements. Egypt'sforeign debt fell to about $31 billion at yearend 1996. Although the paceof reform has been uneven and slower than envisaged under the IMF programs,substantial progress has been made in improving macroeconomic performance- budget deficits have been slashed while foreign reserves in 1996 were atan all-time high - and in moving toward a more decentralized, market-orientedeconomy. Egypt was able to capitalize on its progress during the third MiddleEast/North Africa economic conference which it hosted in November 1996. Egypt'sPresident MUBARAK told reporters that Egypt had concluded deals worth $10billion in investment during the conference, 20 times the country's estimatedtotal direct foreign investment for the 1995/96 fiscal year. According topress reports, Egypt and foreign investors agreed on nine megaprojects, includingthe export of liquefied natural gas from Egypt to Turkey, estimated at $2billion to $4 billion. Egypt has a broad-based inventory of geographic, human,and physical assets which in a liberalized market environment could spur rapid,sustainable growth into the next century. But rapid population growth continuesto cast a shadow over economic prospects.

GDP purchasing power parity - $183.9 billion (1996 est.)

GDP - real growth rate 4.9% (1996 est.)

GDP - per capita purchasing power parity - $2,900 (1996 est.)

GDP - composition by sector
agriculture: 16%
industry : 34%
services: 50% (1995 est.)

Inflation rate - consumer price index 7.3% (1996)

Labor force
total: 17.4 million (1996 est.)
by occupation: agriculture 40%, services, including government 38%, industry 22% (1990est.)

Unemployment rate 9.4% (FY95/96 official estimate)

Budget
revenues: $17.4 billion
expenditures: $18.8 billion, including capital expenditures of $3.5 billion (FY95/96)

Industries textiles, food processing, tourism, chemicals, petroleum, construction,cement, metals

Industrial production growth rate NA%

Electricity - capacity 13.04 million kW (1994)

Electricity - production 47.89 billion kWh (1994)

Electricity - consumption per capita 723 kWh (1995 est.)

Agriculture - products cotton, rice, corn, wheat, beans, fruits, vegetables; cattle, waterbuffalo, sheep, goats; annual fish catch about 140,000 metric tons

Exports
total value : $4.6 billion (f.o.b., FY95/96 est.)
commodities: crude oil and petroleum products, cotton yarn, raw cotton, textiles,metal products, chemicals
partners: EU, US, Japan

Imports
total value: $13.8 billion (c.i.f., FY95/96 est.)
commodities: machinery and equipment, foods, fertilizers, wood products, durableconsumer goods, capital goods
partners: US, EU, Japan

Debt - external $31 billion (yearend 1996 est.)

Economic aid
recipient: ODA, $1.713 billion (1993)

Currency 1 Egyptian pound (ŁE) = 100 piasters

Exchange rates Egyptian pounds (ŁE) per US$1 - 3.4 (November 1994), 3.369 (November1993), 3.345 (November 1992); market rate - 3.3900 (January 1997), 3.3880(1996), 3.3900 (1995), 3.3910 (1994), 3.3718 (1993), 3.3386 (1992)

Fiscal year 1 July - 30 June

NOTE: The information regarding Egypt on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Egypt Economy 1997 information contained here. All suggestions for corrections of any errors about Egypt Economy 1997 should be addressed to the CIA.