plus
an Arabic inscription) in a horizontal line centered in the white
band, and Yemen, which has a plain white band

Economy Egypt

Economy - overview:
Occupying the northeast corner of the African continent, Egypt is
bisected by the highly fertile Nile valley, where most economic
activity takes place. In the last 30 years, the government has
reformed the highly centralized economy it inherited from President
NASSER. In 2005, Prime Minister Ahmed NAZIF reduced personal and
corporate tax rates, reduced energy subsidies, and privatized
several enterprises. The stock market boomed, and GDP grew about 5%
per year in 2005-06. Despite these achievements, the government has
failed to raise living standards for the average Egyptian, and has
had to continue providing subsidies for basic necessities. The
subsidies have contributed to a growing budget deficit - more than
10% of GDP each year - and represent a significant drain on the
economy. Foreign direct investment remains low. To achieve higher
GDP growth the NAZIF government will need to continue its aggressive
pursuit of reform, especially in the energy sector. Egypt's export
sectors - particularly natural gas - have bright prospects.

GDP (purchasing power parity):
$328.1 billion (2006 est.)

GDP (official exchange rate):
$84.51 billion (2006 est.)

GDP - real growth rate:
5.7% (2006 est.)

GDP - per capita (PPP):
$4,200 (2006 est.)

GDP - composition by sector:
agriculture: 14.7%
industry: 35.5%
services: 49.8% (2006 est.)

Labor force:
21.8 million (2006 est.)

Labor force - by occupation:
agriculture: 32%
industry: 17%
services: 51% (2001 est.)

Unemployment rate:
10.3% (2006 est.)

Population below poverty line:
20% (2005 est.)

Household income or consumption by percentage share:
lowest 10%: 4.4%
highest 10%: 25% (1995)

Distribution of family income - Gini index:
34.4 (2001)

Inflation rate (consumer prices):
6.5% (2006 est.)

Investment (gross fixed):
19.2% of GDP (2006 est.)

Budget:
revenues: $21.32 billion
expenditures: $31.83 billion; including capital expenditures of $2.7
billion (2006 est.)

Public debt:
102.9% of GDP (2006 est.)

Agriculture - products:
cotton, rice, corn, wheat, beans, fruits, vegetables; cattle, water
buffalo, sheep, goats

Industries:
textiles, food processing, tourism, chemicals, pharmaceuticals,
hydrocarb