Egypt Introduction Key Economic Facts Risk Assessment (Provided by Coface) Egypt is a country in North Africa that borders the Red Sea Income Level (by per capita Lower Middle Income Country rating: C - A very uncertain political and economic and the Mediterranean Sea. Neighboring countries include GNI): outlook and a business environment with many troublesome Libya, the Gaza Strip, and Sudan. Egypt includes parts of Level of Development: Developing weaknesses can have a significant impact on corporate the Sahara Desert, Libyan Desert, and the GDP, PPP (current international $1,233.15 billion (2019) Nile River, which runs from south to north. $): payment behavior. Corporate default probability is high. The government system is a republic; the GDP growth (annual %): 5.56% (2019) Business Climate rating: B - The business environment is chief of state is the president, and the GDP per capita, PPP (current $12,283.81 (2019) mediocre. The availability and the reliability of corporate head of government is the prime minister. international $): financial information vary widely. Debt collection can Egypt has a mixed economic system which includes a External debt stocks, total $115,079,598,759.70 (2019) sometimes be difficult. The institutional framework has a few variety of private freedom, combined with centralized (DOD, current US$): economic planning and government regulation. Egypt is a Manufacturing, value added (% 15.91% (2019) troublesome weaknesses. Intercompany transactions run member of the League of Arab of GDP): appreciable risks in the unstable, largely inefficient States (Arab League) and the Current account balance (BoP, -$10.22 billion (2019) environments rated B. current US$): Common Market for Eastern Strengths and Southern Africa Inflation, consumer prices 14.40% (2018) • Large market (COMESA). (annual %): Labor force, total: 31,441,059 (2020) • Advantageous geopolitical situation; Suez Canal Unemployment, total (% of 10.13% (2020) • Tourism potential total labor force) (modeled ILO estimate): • Gas (Zohr field) and mineral potential (gold, kaolin, Location: Northern Africa Imports of goods and services $78.09 billion (2019) potash, copper, zinc, lead, feldspar) Capital City: Cairo (+2 GMT) (current US$): • Political and financial support from Gulf monarchies Chief of State: President Abdelfattah Elsis Exports of goods and services $53.04 billion (2019) and Western countries (current US$): Head of Govt.: Prime Minister Mostafa Madbouly • IMF support programme Currency: Egyptian Pound (EGP) GDP Composition % Agriculture Services Industry Manufacturing • Limited external debt (less than 20% of public debt) Major Languages: <p>Arabic (official), English and French widely understood by Weaknesses educated classes</p> • Poverty (one third of the population); low employment 50 36 Primary Religions: <p>Muslim (predominantly Sunni) 11 16 rate among young people 90%, Christian (majority Coptic Orthodox, other Christians include *Although Manufacturing is included in the Industry figures, it is also separately • Low government revenues (19% of GDP) and Armenian Apostolic, Catholic, reported because it plays a critical role in economy. informal economy (half of all jobs) Maronite, Orthodox, and Anglican) Rankings 10% (2015 estimate)</p> • Jihadists active in Sinai region Calling Code: 20 Index Rank • Tensions between part of the Muslim majority and the Corruption Perceptions Index 106 / 180 Voltage: 220 Christian minority (10%) EY Globalization Index 42 / 60 • Lack of water and dependence on the Nile Key Websites Global Competitiveness Index 93 / 141 Global Enabling Trade Index 116 / 136 • Public deficit and public debt Main Government Page: egypt.gov.eg Global Manufacturing Competitiveness Index 37 / 40 • Banking system vulnerable to sovereign risk, with the Commerce Ministry: mti.gov.eg (GMCI) public sector absorbing 2/3 of credit Export Promotion Agency: expoegypt.gov.eg Global Services Location Index 14 / 55 • High cost of credit Investment Promotion gafi.gov.eg Index of Economic Freedom 143 / 179 Agency: • Low and low value-added manufacturing exports; International Logistics Performance Index (LPI) 67 / 160 food dependency Inward FDI Potential Index 83 / 139 • Non-transparency of companies controlled by the KOF Index of Globalization 66 / 185 military (30% of the economy) Networked Readiness Index (NRI) 96 / 139 Open Budget Index 65 / 115 • Corruption, lack of competition, and bureaucracy, including in foreign trade U.S. Embassy Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV Egypt U.S. Embassy Cairo 5 Tawfik Diab Street Garden City, Cairo Egypt Telephone: (20-2) 2797 3300 https://eg.usembassy.gov Country Memo Provided by: globalEDGE.msu.edu and EXPORT.GOV.