Economic Trends

Egypt's economy is the most varied of the Middle East economies, where sectors of tourism, agriculture, industry and service contribute at almost equal rates in the national production. Consequently, Egypt s economy is picking up development at increasing rates, based on a climate luring investments represented in proper legislation, convenient policy, internal stability, trade and market liberalization. This is besides what Egypt possesses of solid infrastructure of transportation, communication, energy sources, skillful manpower, modern industrial communities, banking system and stock market.

The Egyptian Economy has passed through a number of stages since 1952. During 90s decade, Egypt launched a change from directed economy into free-market economy, which resulted in reducing the deficit in the budget cutting down inflation rate to less than 3%, not to mention achieving stability of exchange rates. In addition to adopting the free trade policy, Egypt stemmed out all restrictions and obstacles of investment. Privatization was drawn to most banks and more than 50% of Public Sector companies, which contributed to raising the growth rate to 5%. During the period from 1991 through 1997, Egypt managed to achieve success in its Economic Reform Program. The Egyptian Economy was moving forward when it faced some difficulties, due to impacts of the world economy since 1997. The then economic crisis in East Asian countries, led the world economy into a period of slow performance. Therefore, the Egyptian Economy faced a set of challenges that were represented in high rate of deficit in budget and higher credit rates, and, meanwhile, reduction of revenues of oil's foreign currency. Despite these challenges the Egyptian government could control the budget deficit through many economic procedures and legislative reforms in the fields of taxes, customs and some key economic laws.