) 795-7371

FAX: [20] (2) 797-2000

Flag description: three equal horizontal bands of red (top), white,
and black with the national emblem (a shield superimposed on a
golden eagle facing the hoist side above a scroll bearing the name
of the country in Arabic) centered in the white band; similar to the
flag of Yemen, which has a plain white band; also similar to the
flag of Syria, which has two green stars, and to the flag of Iraq,
which has three green stars (plus an Arabic inscription) in a
horizontal line centered in the white band

Egypt Economy

Economy - overview: A series of IMF arrangements - along with
massive external debt relief resulting from Egypt's participation in
the Gulf war coalition - helped Egypt improve its macroeconomic
performance during the 1990s. Sound fiscal and monetary policies
through the mid-1990s helped to tame inflation, slash budget
deficits, and build up foreign reserves, while structural reforms
such as privatization and new business legislation prompted
increased foreign investment. By mid-1998, however, the pace of
structural reform slackened, and lower combined hard currency
earnings resulted in pressure on the Egyptian pound and sporadic US
dollar shortages. External payments were not in crisis, but Cairo's
attempts to curb demand for foreign exchange convinced some
investors and currency traders that government financial operations
lacked transparency and coordination. Monetary pressures have since
eased, however, with the 1999-2000 higher oil prices, a rebound in
tourism, and a series of mini-devaluations of the pound. The
development of a gas export market is a major plus factor in future
growth.

GDP: purchasing power parity - $247 billion (2000 est.)

GDP - real growth rate: 5% (2000 est.)

GDP - per capita: purchasing power parity - $3,600 (2000 est.)

GDP - composition by sector: agriculture: 17%

industry: 32%

services: 51% (1999)

Population below poverty line: 22.9% (FY95/96 est.)

Household income or consumption by percentage share: lowest 10%:
4.4%

highest 10%: 25% (1995)

Inflation rate (consumer prices): 3% (2000)

Labor force: 19.9 million (2000 est.)

Labor force - by occupation: agriculture 29%, services 49%, industry
22% (FY99)

Unemployment rate: 11.5% (2000 est.)

Budget: revenues: $22.6 billion

expenditures: $26.2 billion, including capital expenditures of $NA
(FY99)

Industries: textiles, food processing, tourism,