Egypt: Economic and Political Overview
3% in FY26, with real GDP up 5.3% in the first half of FY26 (July-December 2025), driven by favourable base effects and investment, particularly from the UAE deal related to the Ras El Hekma development (data World Bank). In 2024, lower gas and oil exports, along with a decline in Suez Canal revenues due to the Middle East conflict, significantly impacted economic activity.
Concerning public finances, Egypt implemented an economic reform program comprising fiscal consolidation measures, the introduction of a floating exchange rate and large cuts in subsidies. Egypt recorded a primary surplus of 3.5% of GDP in FY25, although interest payments still absorbed 10.6% of GDP, and central government debt fell to 82.5% of GDP at end-FY25 from 90.1% a year earlier (World Bank). External financing needs remain significant, driven by maturing debt and arrears to International Oil Companies. Additionally, the widening current account deficit could pressure foreign currency reserves, particularly if the Middle East conflict persists. The debt-to-GDP ratio was estimated at 90.9% by the IMF, with a broadly flat trend expected over the forecast horizon (to 84.9% by 2027). The share in the hands of external lenders only accounts for around one-third of GDP. According to the World Bank, consumer price inflation fell to 13.4% year-on-year in February 2026, down from a peak of 38% in late 2023, but continues to suppress domestic demand. While food prices slowed, disinflation has stalled since summer due to increased energy and public transport prices, linked to cuts in budget subsidies for these sectors. The OECD has also invited Egyptian authorities to continue fighting inflation by keeping monetary policy tight and restraining public investment projects that are not urgently needed.
The unemployment rate stood at 7.2% in 2025, according to the IMF estimates, with female unemployment being around four times higher than for males. The economic recovery is expected to keep unemployment broadly stable, with the rate projected at 7.4% in 2026. However, it is estimated that three-quarters of all employees are paid as unofficial workers, 29.7% of the population lives below the poverty line and 4.5% live in extreme poverty, a ratio that has been decreasing in recent years (CAPMAS – latest data available). Finally, GDP per capita (PPP) was estimated at USD 20,799 in 2024 by the IMF.
| Main Indicators | 2025 | 2026 (E) | 2027 (E) | 2028 (E) | 2029 (E) |
| GDP (billions USD) | 364.64 | 429.65 | 457.08 | 508.47 | 560.08 |
| GDP (Constant Prices, Annual % Change) | 4.4 | 4.2 | 4.8 | 5.5 | 5.2 |
| GDP per Capita (USD) | 3,379 | 3,904 | 4,072 | 4,441 | 4,795 |
| General Government Balance (in % of GDP) | -6.6 | -12.1 | -8.9 | -7.0 | -4.4 |
| General Government Gross Debt (in % of GDP) | 86.8 | 87.0 | 84.9 | 82.0 | 78.0 |
| Inflation Rate (%) | 20.4 | 13.2 | 11.1 | 8.1 | 6.2 |
| Unemployment Rate (% of the Labour Force) | 7.3 | 7.4 | 7.1 | 6.5 | 6.4 |
| Current Account (billions USD) | -15.43 | -17.84 | -20.95 | -19.67 | -19.61 |
| Current Account (in % of GDP) | -4.2 | -4.2 | -4.6 | -3.9 | -3.5 |
Source: IMF – World Economic Outlook Database, Latest data available
Agriculture contributes 16.6% of Egypt’s GDP and employs 18% of the active population (World Bank, latest data available). The sector has historically been important for Egypt, and it accounts for about 20% of total exports and foreign exchange earnings. The country has 3.5 million ha of agricultural land and just 45,000 ha of forests (FAO). The warm climate and the abundant Nile water allow for several annual harvests. The main crops are cereals, cotton, sugar cane and beetroots. The country is also a major producer of long-staple cotton, which is used in the textile industry. Fisheries in Egypt occupy vast areas of more than 13 million acres, equivalent to approximately 150% of their agricultural land. According to the latest official governmental figures, Egypt's agricultural exports set a new record in 2025, reaching USD 11.5 billion and a record volume of 9.5 million tons, around 24% of the country's total exports. According to the report, the list of the top agricultural exports includes: citrus fruits, fresh potatoes, fresh onions, grapes, fresh and dry beans, sweet potatoes, mangoes, fresh tomatoes, fresh garlic, fresh strawberries, guavas, and pomegranates.
Egypt's non-oil industry remains rather limited. With automotive manufacturing, steel, cotton cultivation, textile production and the construction industry, the secondary sector accounts for 32.1% of the GDP and employs 29% of the workforce (World Bank). Overall, the manufacturing sector alone accounts for 14.5% of GDP, whereas the mining industry accounts for only 1%, but is a strategic sector at the centre of the country’s development plan, as the government aims at increasing its share of GDP to 5% over the next two decades. Despite economic diversification efforts, the country continues to depend on the Suez Canal for a large part of its foreign income. Egypt's oil and gas industry is the key driver of the economy, accounting for more than one-fifth of GDP and standing as the country's largest industrial sector (data U.S. Trade Administration). Preliminary government data shows a production increase of 200 mmcf/d of natural gas and 39,000 bbl/d of oil between July and October 2024. Egypt’s non-oil exports surged 17% to USD 48.6 billion in 2025, highlighting sectoral progress.
Finally, the services sector represents 47.3% of the Egyptian GDP and employs more than half of the population (53%). It is largely dominated by revenues from the telecommunications (approximately 4% of the total GDP as per the National Telecom Regulatory Authority) and tourism sectors. According to official governmental figures, Egypt’s tourism revenue more than doubled in a decade, reaching USD 15.3 billion in 2024 from USD 7.2 billion in 2014. Inbound tourists reached a record 19 million in 2025, up 21% from 15.7 million in 2024 and the government is planning to expand Egypt's hotel capacity and enhance tourism infrastructure. Small local grocers dominate Egypt’s retail market, accounting for over USD 13 billion in sales and about 60% market share. However, competition in the food retail sector is intensifying as local and international players focus on pricing and product innovation (data USDA).
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
| Employment By Sector (in % of Total Employment) | 17.5 | 29.4 | 53.1 |
| Value Added (in % of GDP) | 16.6 | 32.1 | 47.3 |
| Value Added (Annual % Change) | 2.8 | 4.6 | 4.6 |
Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.
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The business rankings model measures the quality or attractiveness of the business environment in a series of countries. It examines separate criteria or categories, covering the political environment, the macroeconomic environment, market opportunities, policy towards free enterprise and competition, policy towards foreign investment, foreign trade and exchange controls, taxes, financing, the labour market and infrastructure.
Source: The Economist Intelligence Unit - Business Environment Rankings 2020-2024
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Latest Update: October 2026
