Located at a strategic trade location, Egypt is a major economic power in the African continent. This transcontinental country is bordered by the Gaza Strip, Israel, Sudan and Libya. The country has a diverse terrain, with a long coastline across the Red Sea and the Mediterranean Sea. A large portion of the Sahara Desert falls within the borders of Egypt. In terms of land area, Egypt holds the 30th position in the world. One of the earliest cradles of human civilization, the country has a population of approximately 77 million (2009 estimates). A majority of the population resides along the Nile basin. The Nile River is also central to Egypt’s economy, as a majority of the trade activities take place along this basin.
Till the late 1990s, Egypt’s economy was highly centralized due to the economic policies of the former President Gamal Abdel Nasser. However, during 2004-08, the country saw major economic reforms targeted towards attracting foreign direct investment. However, in the fiscal year 2008-09, the global recession forced economic reforms to take a backseat. Due to this, the country’s GDP grew only at 4.56% in the year 2009. According to the 2009 estimates, the country’s GDP stands at US$470.4 billion and per capita GDP is US$6,000. The rising rate of inflation has become a severe threat for the Egyptian economy after 2008. According to the estimates, inflation reached 18.3% in the fiscal year 2009-10.
Egypt’s economy is largely dependent on petrochemical exports to European nations. The country has healthy trade relations with African nations, the Middle East countries and EU members. Egypt is a member of the Arab League and the WTO. It has significant bilateral relations with several EU nations.
Here are some of the major statistics related to Egypt’s economy:
|
Labor force |
25.8 million (2009 est.) |
|
Unemployment rate |
9.7% (2007 est.) |
|
Budget revenues |
$48.86 billion (2009 est.) |
|
Budget expenditures |
$61.61 billion (2009 est.) |
|
Industrial production growth rate |
3.9% (2009 est.) |
|
Current account balance |
-$3.32 billion (2009 est.) |
|
Exports |
$22.91 billion (2009 est.) |
|
Imports |
$43.98 billion (2009 est.) |
|
Foreign exchange reserve |
$34.99 billion (2009 est.) |
|
External debt |
$28.45 billion (June 2009) |
Egypt’s economic profile is changing, partly due to healthy economic reforms and significantly due to a rise in foreign direct investment (FDI). According to the 2008 annual report, the IMF acclaims Egypt as one of the top countries undertaking serious economic reforms.
