Egypt

Kimmi Suhy

Overall Score: 55.2 World Rank: 124

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Quick Facts About Egypt Compared to the U.S.

  • Population: 84.2 million//318.9 million
  • GDP: $553.6 billion//16.77 trillion
  • GDP Growth: 2.1%//2.2%
  • GDP Per Capita: $6,579//$53,042
  • Unemployment: 12.7%//5.3%
  • Inflation: 6.9%//-0.1%
  • Foreign Direct Investment: $5.6 billion//$294.971 trillion

1. Legal System

Property rights are not effectively protected. Also, it is difficult to establish titles to real property. In most of the regions, foreign ownership of land is restricted.

2. Competitive Markets

More competitive markets are needed to improve Egypt's economic progress. These competitive markets would give the best deals to consumers and consumers would be more willing to purchase goods.

3. Limits on Government Regulation

Previous regulatory systems made starting a business less time-consuming. The less time-consuming somethings is, the more economic progress it will create. However, some of these reforms didn't give enough structure to other policy areas which hurt entrepreneurial growth.

4. An Efficient Capital Market

There are two international markets with high levels of resilience. These banks and markets are very well capitalized. This means that they make high profits and the markets are gaining an advantage.

5. Monetary Stability

In 2014 the government significantly increased fuel and electricity prices. They did this is cut state subsidies. Also in 2013 the government increased tariffs on luxury goods. Markets have shown a high level of resilience because of it.

6. Low Tax Rates

12.9 percent of Egypt's total tax revenue is domestic income. The corporate tax income rates are 25 percent. In the U.S., 46 percent comes from individual income and only 11 percent is corporate income tax.

7. Free Trade

The average tariff rate is 8.1 percent. This is opposite of the United States, which is bout 1.8 percent. This shows how different the two countries are in the aspect of trading.
Outlook for Egypt's economy in 2015 - BBC report
The government is looking to expand the Suez Canal to double the amount of ships that pass through, hoping to help the economy. President Sisi raised taxes and slashed fuel subsidies. Egypt's economy still has a long way to go with its poverty levels and increasing power shortages.

Extra Facts

Egypt's main exports consist of natural gas, and non-petroleum products. These products include ready-made clothes, cotton textiles, medical and petrochemical products, citrus fruits, rice and dried onion, and more recently cement, steel, and ceramics. Egypt's main imports consist of pharmaceuticals and non-petroleum products such as wheat, maize, cars and car spare parts.
Cotton has been the stable crop, but it is no longer as vital of an export.
The economy of Egypt was a highly centralized planned economy focused on import substitution under President Gamal Abdel Nasser.