Egypt Economic Outlook
A fast-growing but challenged economy:
Egypt has one of the largest economies in Africa and the Middle East, with strong contributions from tourism, remittances, agriculture, and natural gas exports. The country has achieved rapid GDP growth in recent years, supported by infrastructure investments and government-led economic reforms. However, inflation and foreign currency shortages have created economic instability.
Tourism and infrastructure investment:Tourism is a major pillar of Egypt’s economy, with the country’s historical sites and Red Sea resorts attracting millions of visitors annually. Infrastructure megaprojects, such as the expansion of the Suez Canal and new urban developments like the New Administrative Capital, have driven investment and job creation. However, these projects have also increased public debt.
Currency pressures and inflation:Egypt has faced significant economic challenges due to currency devaluations and high inflation, which has eroded purchasing power. The government has sought IMF assistance to stabilize the economy, implementing subsidy cuts and structural reforms. However, rising living costs have led to public discontent and increased pressure on policymakers.
Egypt’s economic projections:Growth in Egypt’s economy is expected to continue, driven by tourism, infrastructure, and energy exports. However, macroeconomic stability will depend on managing inflation, attracting foreign investment, and sustaining reforms. Strengthening industrial production and improving the business environment will be crucial for long-term economic resilience.
Egypt's Macroeconomic Analysis:
Nominal GDP of USD 383 billion in 2024.
GDP per capita of USD 3,574 compared to the global average of USD 10,589.
Average real GDP growth of 4.2% over the last decade.
Sector Analysis
In 2022, services accounted for 52% of overall GDP, manufacturing 15%, other industrial activity 22%, and agriculture 11%. Looking at GDP by expenditure, private consumption accounted for 83% of GDP in 2023, government consumption 7%, fixed investment 13%, and net exports -3%.International trade
In 2021, manufactured products made up 52% of total merchandise exports, mineral fuels 18%, food 20%, ores and metals 5% and agricultural raw materials 1%, with other categories accounting for 4% of the total. In the same period, manufactured products made up 54% of total merchandise imports, mineral fuels 15%, food 22%, ores and metals 7% and agricultural raw materials 2%, with other goods accounting for 0% of the total. Total exports were worth USD 33 billion in 2024, while total imports were USD 72 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 4.2% in the decade to 2024. To read more about GDP growth in Egypt, go to our dedicated page.
Fiscal policy
Egypt's fiscal deficit averaged 8.4% of GDP in the decade to 2024. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 10.1% in the decade to 2023. For more information on Egypt's unemployment click here.
Inflation
Inflation averaged 15.8% in the decade to 2024. Go to our Egypt inflation page for extra insight.
Monetary Policy
Egypt's monetary policy rate ended 2024 at 27.25%, up from 9.25% a decade earlier. See our Egypt monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the pound weakened by 85.8% vs the U.S. dollar. For more info on the pound, click here.
Economic situation in Egypt
Our Consensus is for year-on-year GDP growth to have decelerated slightly in October–December 2024 (Q2 FY 2025) from the prior three months on record-high interest rates. That said, available high-frequency data for economic activity is more optimistic; in Q2, industrial output expanded the most in over a year, and goods exports growth was the highest since April–June 2022. This was despite natural gas production falling at a faster clip and oil production deteriorating in October. Additionally, inflation slowed to a two-year low, and the number of employed people rose to the highest since at least 2003 in Q2. In other news, in February, the government said it would hike the minimum wage for the private sector by 17% from 1 March; from 1 July, a similar increase will be in effect for public salaries; this will support private consumption but will stoke inflation and the fiscal deficit.Egypt Economic Forecasts
Projections out to 2034.48 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 30 expert analysts.
Want to get insight on the economic outlook for Egypt in the coming years? FocusEconomics collects projections out to 2034 on 48 economic indicators for Egypt from a panel of 30 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Egypt economy. To download a sample report on the Egypt's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.