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.
Nominal GDP of USD 383 billion in 2024.
Nominal GDP of USD 383 billion in 2024.
GDP per capita of USD 3,574 compared to the global average of USD 10,589.
GDP per capita of USD 3,574 compared to the global average of USD 10,589.
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.
Average real GDP growth of 4.2% over the last decade.
Average real GDP growth of 4.2% over the last decade.
Sector Analysis
In 2022, services accounted for 51.6% of overall GDP, manufacturing 15.1%, other industrial activity 22.7%, and agriculture 10.6%. Looking at GDP by expenditure, private consumption accounted for 82.6% of GDP in 2023, government consumption 6.8%, fixed investment 12.9%, and net exports -2.3%.International trade
In 2023, manufactured products made up 52.2% of total merchandise exports, mineral fuels 17.5%, food 20.0%, ores and metals 4.7% and agricultural raw materials 1.2%, with other categories accounting for 4.4% of the total. In the same period, manufactured products made up 53.8% of total merchandise imports, mineral fuels 15.2%, food 21.6%, ores and metals 7.1% and agricultural raw materials 2.1%, with other goods accounting for 0.2% of the total. Total exports were worth USD 32.60 billion in 2024, while total imports were USD 72.10 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 GDP to grow in January–June at the fastest annual clip since the post-pandemic rebound three years ago. The unemployment rate fell to the joint-lowest level since records began in 1993 in January–March, and purchasing power improved for a third month running in April as wage growth topped inflation, likely buttressing private consumption in the period. Moreover, the steep drop in inflation in January–May has allowed the Central Bank to cut its interest rates for the first time in five years; lower rates are likely supporting investment. Looking at available data, in January–March, industrial output grew the most in just under three years, and non-oil sector business operating conditions largely stabilized in May from April. In other news, Qatar pledged a USD 7.5 billion package of direct investments to Egypt in mid-April.Egypt Economic Forecasts
Projections out to 2035.48 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 27 expert analysts.
Want to get insight on the economic outlook for Egypt in the coming years? FocusEconomics collects projections out to 2035 on 48 economic indicators for Egypt from a panel of 27 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.