Economics of Egypt Report

Item	2006	2011	2016	Comment	Reference(s)
GDP (billion $)	107.5	236.0	331	a relatively low GDP	Egypt, Arab Rep., 2016 Egypt \| Economic Indicators, 2016
GDP per Capita ($)	1,330	2,590	2707	low value	Egypt, Arab Rep., 2016 Egypt \| Economic Indicators, 2016
Population (millions)	76.27	83.79	83.4	high population	Egypt, Arab Rep., 2016 Egypt \| Economic Indicators, 2016
Population Growth (%)	1.76	2.11	n/a	low growth rate	Egypt, Arab Rep., 2016
GINI Coefficient (Score/Rank)	34.4/111	32.1/113	n/a for 2016 yet	medium inequality country	UNDP (2006); UNDP (2011)
Annual inflation (%)	7.64	10.05	12.02	low value of inflation	Egypt, Arab Rep., 2016 Egypt Inflation Rate, 2016
Unemployment (%)	10.6	12	12.6	above the generally accepted number - 6%	Egypt, Arab Rep., 2016 Egypt Unemployment Rate, 2016
TIs CPI (Score/Rank)	3.3/70	2.9/112	n/a for 2016 yet	highly corrupted; situation got worse over years	Transparency International 2006 Transparency International 2011
Exchange Rate (USD/EGP)	5.74	5.94	9.45		Yearly Average Rates, 2016
Trade (Imports/Exports) (million USD)	20,594/13,720	62,282/31,582	71,337/26.812	Over the reviewed period, imports increased by 3.5 times, while exports grew by almost 200%	Egypt, Arab Rep..Trade Summary, n.d. Egypt Imports, n.d.

References

Egypt, Arab rep. (2016). Retrieved from http://data.worldbank.org/country/egypt-arab-rep?view=chart

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Egypt, Arab rep. Trade summary. (n.d.). Retrieved from http://wits.worldbank.org/CountryProfile/en/Country/EGY/Year/2006/Summary

Egypt, Arab rep. Trade summary. (n.d.). Retrieved from http://wits.worldbank.org/CountryProfile/en/Country/EGY/Year/2011/Summary

Egypt | Economic indicators. (2016, October 12). Retrieved from http://www.tradingeconomics.com/egypt/indicators

Egypt imports. (n.d.). Retrieved December 12, 2016, from http://www.tradingeconomics.com/egypt/imports

Egypt inflation rate. (2016). Retrieved from http://www.tradingeconomics.com/egypt/inflation-cpi

Egypt unemployment rate. (2016). Retrieved from http://www.tradingeconomics.com/egypt/unemployment-rate

Transparency international. (2011). Corruption perceptions index 2011 [PDF]. Berlin.

Yearly average rates. (2016). Retrieved from http://www.usforex.com/forex-tools/historical-rate-tools/yearly-average-rates

UNDP. (2006). Human development report 2006 [PDF]. New York, NY: United Nations Development Programme.

UNDP. (2011). Human development report 2011 [PDF]. New York, NY: United Nations Development Programme.

Sector Analysis (2016)

The economy of Egypt consists of three sectors, namely the primary (agriculture, fishing, and mining), secondary (production of finished goods), and tertiary (services) sectors. According to Stiglitz (2010), six years ago, Egypts agriculture comprised 13.1% of the countrys GDP, while industry and services constituted 37.7% and 49.2% of the GDP respectively. The following is the general analysis of the Egyptian economic sectors:

1. Egypt is rich in various metals and minerals, including coal, gold, and iron ore. However, the total value of extracted and exported raw materials is not significant, and, consequently, the industry does not play a significant role in the countrys economy. However, according to Jamasmie (2016), one of the companies is currently opening a big mine, and it will be extracting significant amounts of gold by 2020.

2. In 2014, agriculture contributed to 14% of the countrys GDP, and it ranked third among Egyptian industries (Basiouny, 2014). It is primarily owned by smallholders, although the industry is not positively affected by the increasing amount of investments. However, the complicated customs procedures impose difficulties on international trade and cause numerous delays (Agriculture, 2016).

3. Although the revolution of 2011 in Egypt had a significant negative impact on the countrys industrial sector, the state is now recovering from the consequences of rebellions. Particularly, the sector has been decided to be the leading one in Egypts economy (Egypts Industrial Sector, 2016). The government created new industrial areas, carried out training, and compiled development plans. It is expected that in the near future, the sector will greatly increase the economys output.

4. Egypts tertiary sector is one of the countrys most developed ones. Particularly, the states tourism sector accounts for a large portion of the countrys GDP, and the government and private sector invest large amounts of resources into this component of the economy.

References

Basiouny, E. (2014, March). Sector analysis. Cairo, Egypt: Ministry of Foreign Affairs of Denmark.

Jamasmie, C. (2016, June 14). Egypt ancient gold mines offer clues on countrys untapped vast mineral deposits. Retrieved from http://www.mining.com/egypt-ancient-gold-mines-offer-clues-on-countrys-untapped-vast-mineral-deposits/

Oxford Business Group. (2016, February 2). Agriculture. Retrieved from https://www.oxfordbusinessgroup.com/egypt-2016/agriculture-0

Oxford Business Group. (2016, February 11). Egypts industrial sector a driver of economic activity. Retrieved December 10, 2016, from https://www.oxfordbusinessgroup.com/overview/fuelling-expansion-industry-remains-important-driver-economic-activity

Stiglitz, J. E. (2010, March 29). Egypt economic structure. Retrieved from http://www.economywatch.com/world_economy/egypt/structure-of-economy.html

Bonus Question

Compare Egypts latest (2016) figures to those of South Africa, Saudi Arabia, Tunisia, Canada, Germany, Norway, Tanzania, Singapore and Argentina (GDP, GDP per Capita, GINI, CPI). What does the comparison tell you? [in no more than a page]

Country	GDP (billion $)	GDP per Capita ($)	GINI (score/rank)	CPI (score/rank)
Egypt	331	2707	n/a for 2016	n/a for 2016
South Africa	313	7575	n/a for 2016	n/a for 2016
Saudi Arabia	646	21313	n/a for 2016	n/a for 2016
Tunisia	42.02	4235	n/a for 2016	n/a for 2016
Canada	1551	50001	n/a for 2016	n/a for 2016
Germany	3356	45270	n/a for 2016	n/a for 2016
Norway	338	89741	n/a for 2016	n/a for 2016
Tanzania	44.9	842	n/a for 2016	n/a for 2016
Singapore	293	51855	n/a for 2016	n/a for 2016
Argentina	548	12128	n/a for 2016	n/a for 2016

Comment

The analysis of the table with the data reveals several trends. First, the African countries (except for South Africa) are poorer than the other states, and they have the lowest GDP per capita among all the reviewed countries. Besides, the European countries generally have a larger GDP than the African ones.

Second, in spite of the relatively small GDP, the African countries have a relatively high GDP per capita, which could be explained by a small population because this indicator is calculated as the GDP divided by the number of people living within a state.

Third, the possession of oil deposits does not necessarily equal the highest profits. Although Saudi Arabia and Singapore have more oil than the majority of other countries on the planet, some other states, like Canada, have a higher or almost the same GDP. This means that with the proper diversification of trading, a country can reach prosperity, while the concentration on a single export product might make a state remain on the same development level. Nevertheless, the oil-trading countries still have high levels of both GDP and GDP per capita.

Fourth, the countries with a larger GDP and GDP by capita are those that are either situated on the seashore or have borders with other developed states. The reason for such a tendency is the access to the world sea trade routes and the ease of transfer of technologies and goods, which means faster trading and exporting.

Finally, the richer countries are those that did not use to be colonies of other states and retained their continental powers throughout the history. The former colonies did not have enough time to organize their economies and did not manage to become outstanding production bodies in the world economy. Consequently, now they have to act as either raw material appendages or cheap workforce sources for the more developed nations.

Economy

Union Management

Economics of Egypt Report

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