The Economy of Egypt

Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. In the last 30 years, the government has reformed the highly centralized economy and in 2005, Prime Minister Ahmed Nazif reduced personal and corporate tax rates, reduced energy subsidies, and privatized several enterprises. The stock market boomed, and GDP grew about 5% per year in 2005-06.

Despite these achievements, the government has failed to raise living standards for the average Egyptian, and has had to continue providing subsidies for basic necessities. Twenty percent of the population remains below the poverty line. Egypt still exhibits extreme differences between rich and poor, and is still considered a poor country. However, a growing number of the inhabitants can be considered as middle class or rich.

Foreign direct investment remains low but Egypt's economy spectrum has diversity, including involvement with agriculture, textiles and some industry. Some export sectors such as natural gas have bright prospects.

The currency of Egypt is the Egyptian Pound.