Middle East and North Africa

Egypt
Last reviewed: 27 January 2008

Country information

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ECONOMY

Overview

The success of Egypt’s ambitious programme of economic reform and liberalisation is demonstrated by GDP growth of around 7% for the past 3 years. Growth has been driven by high levels of FDI and increased exports. The government’s five-year plan for the period 2007/8 to 2011/12 includes an ambitious target for annual real GDP growth of 8%. If achieved, this would meet the need to create jobs for Egypt's fast-growing and youthful population, and allow the gradual reduction of the debt burden. However, some predict that growth will slow to 6.7% this financial year, with inflation expected to average 14.4%. Living standards remain low, and Government subsidies add to a growing deficit of 10% of GDP.

High inflation and rising food prices have led to social tension, resulting in sporadic demonstrations and will continue to do so as the economic climate remains uncertain.

Financial sector reform is a government priority and privatisation is an important element in this. Measures taken so far have included major cuts in income tax rates and customs duties and an ambitious programme place to consolidate the banking sector and to improve access to finance for the private sector.

Educational reform is another key challenge for the government, improving the skills base of the workforce in line with market demands is essential for Egypt to continue to enjoy high economic growth, and for its citizens to realise the benefits.

In trade, Egypt is heavily import-dependent. Exports include oil, cotton and textiles. Service industries, specifically tourism, canal revenues and emigrant workers' remittances, provide a significant proportion of foreign currency earnings.

Basic Economic Facts

Sources: Economic Intelligence Report
GDP: $129.8bn (2007)
GDP per head: $5,318 (US$ at PPP, est 2007)
Annual growth: 7.1%
Inflation: 14.4% (2008)
Major Industries: Agriculture, Manufacturing, Services, Tourism. Growth sectors include ICT, Construction.
Exchange rate: £1 = 10.61 Egyptian pounds (June 2008)

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Address:

Embassy of the Arab Republic of Egypt
26 South Street
London
W1K 1DWA

Consulate General:
2 Lowndes Street
London SW1X 9ET
Defence Office:
24 South Street
London W1K 1DN
Commercial Office:
23 South Street
London W1K 2XD
Press and Information Office:
299 Oxford Street
London W1C 2DZ
Cultural Office:
4 Chesterfield Gardens
London W1J 5BG
State Tourist Bureau:
170 Piccadilly
London W1J 9EJ
Medical Office:
47 Longridge Road
London SW5 9SD

Telephone:

(020) 7499 3304/2401
(020) 7235 9719 Consulate General
(020) 7493 2649 Defence Office
(020) 7499 3002 Commercial Office
(020) 7409 2236 Press and Information Office
(020) 7491 7720 Cultural Office
(020) 7493 5283 State Tourist Bureau
(020) 7370 6944 Medical Office

Fax:

(020) 7491 1542
(020) 7235 5684 Consulate General
(020) 7495 3573 Defence Office
(020) 7493 8110 Commercial Office
(020) 7493 7456 Press and Information Office
(020) 7408 1335 Cultural Office
(020) 7408 0295 State Tourist Bureau
(020) 7370 3641 Medical Office

Email: eg.emb_london@mfa.gov.eg

Email: modegy2003@hotmail.com

Email: london@tamseel-ees.gov.eg

Email: info@egpressoffice.com

Email: egypt.culture@btconnect.com

Email: info.uk@egypt.travel

Email: samiehamer@egmedoffice.org

Office hours:

Mon-Fri: 0930–1630