Egypt’s economy has shown gradual signs of progress over the decade.

Its main exports are oil and natural gas.

(Source: Heritage.org)

Gross Domestic Product (GDP)

P= Projected

(Source: National Statistics(2005-2008),imf.org : select ‘Prepare Report’ (2009))                                                                                               

From 2005 to 2009 Egypt’s GDP has increased consistently from LE 538.5 billion to LE 1,038.60 billion. The GDP was projected at LE 1,198.0 billion in 2010.

GDP growth

 

(Source: Worldbank.org)

GDP growth rate increased from 4.5% in 2005 to 6.8% in 2006. The rate rose marginally from 2006 to 2008. However, from 2008 to 2009, the rate fell sharply from 7.2% to 4.6%.

Gross national income (GNI)

(Source: undp.org, pg 4)

In the past two decades, from 1990 to 2010, the GNI at PPP grew at a Compounded Annual Growth Rate (CAGR) of 2.58%. In 2010, the GNI was registered at USD 5,889.

Tax rate

Egypt’s individual income tax rate varies from 10% to 20%.

Income Range (LE)	Tax Rate
Up to 5,000	0%
5,001 to 20,000	10%
20,001 to 40,000	15%
Above 40,000	20%

 

(Source: Tax Rates)

The Corporate Income Tax rate is 20% and The Value-Added Tax (VAT) levied in the country is 10%.

(Source: Tax Rates)

Inflation

 

(Source: National Statistics(2005 to 2009), National Statistics(2010), National Statistics(2011))

Inflation has been fluctuating strongly since 2005. An increase in inflation was witnessed from 4.8% in 2005 to 18.3% in 2008. However, after 2008, it dropped to 11.8% in 2009, and proceeded to drop further to 10.8% in 2010. As of 2011, the rate is recorded at 18.2%.

Foreign Direct Investment (FDI) Inflow

(Source: Worldbank.org)

FDI showed steady rise from 2005 to 2007. Comparatively, from 2007 to 2009, investment inflow fell from USD 11.58 billion to USD 6.71 billion.

Central bank assets

(Source: Central Bank)

Egypt’s central bank assets recorded continual growth from 2005 to 2009 at a rate of 14.72%. In 2009, total assets amounted to LE 175,104 million.

Unemployment rate

Unemployment declined marginally over 2005-2010. In 2010, the rate was registered at 8.92%.

Minimum wage

As of 2010, nationalminimum wage was approximately LE 35 per month.

(Source: All Africa)

Level of unionisation

The single trade union federation in the country is the ‘Egyptian Trade Union Federation’ (ETUF), which is a legally recognised organisation. Collective bargaining is limited in Egypt, however, Union strikes are not forbidden under law.

Collective bargaining and negotiation agreements are the responsibility of Ministry of Manpower and Migration.  

(Source: Ituc-csi.org)

The country has one of the oldest political systems in the world. The Egyptian Parliament came into existence in 1824, and the Constitution was formulated in 1882. However, it has been amended continually, in 1971, 1980, 2005 and 2007.

The political environment in the country is unstable.

The country’s constitution establishes the roles of the national governing authorities. These authorities are: executive, legislative, judiciary, political parties, press, civil society organizations and local administrative bodies. All of the basic principles are based on Islam’s Shariah Law.

2005 was a year of marked improvement for the Egyptian government. Multiple candidates were permitted to contest in presidential elections. Aditonally, a ten-point programme was launched for national implementation. This program focused on ensuring equality of citizens’ rights, support for low-income groups, improving foreign relations, improving people’s technological abilities and providing better administrative services to citizens. Finally, the roles of the parliament, judiciary and citizens were all reformed.

(Sources: State Information Service, BBC)

Regulatory environment

(Source: Heritage.org)

Egypt has the world’s 96th freest economy on the 2011 Economic Freedom Index with a score of 59.1.The country stands 11th amongst the 17 countries in Middle East/North Africa region. Egypt’s total score falls below world and regional averages.

(Source: Heritage.org)

 

Corruption perceptions

The Corruption Perceptions Index (CPI) is a survey that measures the perceived level of corruption across countries worldwide.Egypt is 98th among 178 countries in the 2010 Corruption Perception Index, indicating the corruption level in the country is moderately high. 

(Source: Transparency.org)

 

Freedom of information
In 2010, Egypt was ranked 127th on the Press Freedom Index, with a score of 43.33. The index contains 178 countries with scores ranging from zero, zero implying most freedom, to about 105. Therefore, a score of 43.33 indicates very high restrictions on the media.
(Source: rsf.org)

Literacy rate

The country’s literacy is 66%.

(Source: UNICEF)

Education

Egypt’s constitution establishes the basic national education framework.  Equality and equal opportunity are the governing principles of Egypt’s education system.  The state declares education as free in all state institutions. ‘Ministry of Education’ is the governing authority of the education system. The body is in charge of the education budget, policies, syllabus, evaluation mechanism and prescribed texts. The ministry operates in co-operation with other ministries and higher institutes of education.  

Eight years of education is mandatory. However, the government has plans to extend compulsory education to higher levels.

Higher education is managed by the ‘Ministry of Higher Education’. Educational directorates govern staff and healthcare issues. The ‘Centre for Developing Curricula and Educational Materials’ prepares and modifies educational content, working in co-ordination with advisory committees. ‘The Supreme Council of Universities’ is responsible for the management of universities. ‘The National Centre for Educational Research and Development’ carries out educational research that provides support to the process of making educational policies.

Majority of the financial support of Egypt’s education system is derived from the government. Public contributions towards education are also encouraged by the government.

In 2010, Egypt’s adult literacy rate is registered at 66.4%.

(Sources: ibe.unesco, undp.org)

Health

The ‘Ministry of Health and Population’ (MOHP), established in 1936, is the governing authority of Egypt’s healthcare system. It functions across four levels- the Central, the Health Directorates, Health Districts and Health care providers.

The sectors operating at the Central level are:

• The Health Care and Nursing sector
• The Minister’s Office Affairs
• The Curative Health sector
• The Preventive Health sector
• The Health Regions sector
• The Training and Research sector
• The Preventive Affairs and Endemic Diseases sector

Egypt’s health care system is funded mainly through the Ministry of Finance. The ministry distributes approximately 40% of the allocated budget to public sector authorities such as the Ministry of Education, the Curative Care Organisation, teaching hospitals, the Health Insurance Organisation and other ministries.

The MOHP has collaborated with many international organizations including WHO (World Health Organization), the World Bank, EU and UNICEF to create health awareness across the nation. It also has bilateral agreements with Germany, Italy, Norway, Denmark and the Netherlands.

(Source: Ministry of Health, who.int)

Road

In 2008, the total length of paved roads in Egypt was measured at 91,173 km.

(Source: National Statistics)

Railways

There were 159 units of subway passenger trains in 2007.

Rail Cargo transport (2007):

(Source: National Statistics)

Cargo transport within Egypt is mainly carried out by rail wagons, trains and locomotives.

Airway

Egypt has 29 airports. Some of Egypt’s main airports are located in Abu Simbel, Alexandria, Aswan, Asyut, Cairo, El Arish, Hurghada, Shark El Oweinat, Sharm El Sheikh and Taba. 

(Source: Aircraft World Charter)

Aircraft Movement

(Source: National Statistics)

Aircraft movement in both local and international airports has consistently increased from 2005 to 2008.

Telecommunication

(Source: National Statistics)

Number of telephone, mobile and internet users have increased from 2008 to 2009.

Telecom Egypt is a key fixed line operator. However, fixed line installations are likely to reduce with the popularity of cellular and internet communication. As of 2010, approximately 17.06 million out of 80.47 million, or 21.2% of population, were internet users.

(Source: Internet World Stats)

Main broadband developments in Egypt include: access to ADSL2+ services to all households, liberalised VoIP telephony, 2G and 3G services and Next Generation Network (NGN) installation for convergence of data and voice services.

(Source: Internet World Stats)