section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  The economy of Egypt is the second-largest in Africa and ranks 42nd worldwide as of 2025. It is a major emerging market economy, marked by its membership in organizations like the African Union, Arab League, BRICS, and its participation in the African Continental Free Trade Area (AfCFTA). The Egyptian economy has evolved significantly since the early 2000s, transitioning toward a market-oriented system through fiscal and monetary reforms, privatization efforts, and foreign investment incentives. These measures have contributed to macroeconomic stability and improved unemployment and poverty rates.
  
  Egypt’s industrial base is diverse, encompassing chemical production, electronics, mining, steel, automotive manufacturing, pharmaceuticals, and textiles. The chemical industry is one of Egypt’s largest, comprising plastics, rubber, paper, detergents, paints, fertilizers, and glass. Petrochemicals alone contribute around 12% of industrial output, valued at approximately $7 billion annually. With projected exports of $9 billion in 2024, the government supports the sector through infrastructure development, technology investments, and trade agreements. In electronics and home appliances, Egypt has positioned itself as a manufacturing hub through initiatives such as "Egypt Makes Electronics," with many international companies setting up factories in the country, including Electrolux, Samsung, Hisense, Beko, and Haier. Egypt is Africa’s top steel producer, ranking 20th globally, with 9.8 million tons in 2022 and exports tripling to 1.54 million tons in 2023.
  
  Egypt's automotive industry, led by state-owned El Nasr Automotive Manufacturing Company and private firms like Ghabbour Group and MCV, has expanded through partnerships with global manufacturers, producing a range of passenger and commercial vehicles for both local and export markets. The government’s 2024–2030 strategy aims to increase production to 500,000 vehicles annually, boost exports, and establish local electric vehicle manufacturing by 2025, integrating EVs into public transportation and fostering an automotive hub for regional and international markets.
  
  Egypt's gold mining industry has expanded rapidly, driven by untapped reserves and government-led reforms aimed at modernizing the sector. The launch of international bid rounds marked a shift towards private sector participation, attracting major players such as AngloGold Ashanti and Alexander Nubia International. The Sukari mine, Egypt’s first large-scale modern gold operation, became the centerpiece of these efforts, contributing significantly to production. The government has since introduced structural reforms to increase mining’s GDP share to 5–6% by 2030, including digitization initiatives and investment-friendly policies. These measures have fueled a surge in gold exports, reaching $2.17 billion in 2024, nearly double the previous year, with Egypt aiming to rank among the world's top 10 gold exporters by 2027.
  
  Egypt’s agricultural sector remains essential to its economy, though its share of GDP and employment has declined over time. Egypt produces substantial quantities of wheat, maize, sugarcane, fruits, vegetables, fodder, and rice, yet remains reliant on wheat and maize imports, primarily from Ukraine and Russia, despite yield improvements since 1970. This dependency stems from high domestic demand, driven by subsidies and a culinary preference for bread, as well as Egypt’s limited arable land and its emphasis on high-value export crops. The Aswan High Dam, completed in 1971, significantly improved irrigation stability. As of 2010, 3.6 million hectares were cultivated, with the government targeting 4.8 million hectares by 2030. Major initiatives include the New Delta and Toshka Project, designed to convert desert areas into farmland using advanced irrigation techniques, wastewater treatment, groundwater and water desalination. Efforts to deregulate agriculture have improved price alignment with global markets, but climate change and water scarcity continue to pose long-term challenges.
  
  Egypt is among the world’s top five recipients of remittances, which reached $23.7 billion in the first 10 months of 2024, a 45.3% increase from the previous year. These inflows are crucial for Egypt’s foreign reserves and household incomes. Since 1979, Egypt has received substantial United States foreign aid, averaging $1.5 billion annually, with approximately $200 million allocated to economic assistance and the remainder directed toward military aid for procuring weapon systems from American suppliers.
  
  One of Egypt's most significant economic events in recent years was the currency flotation in 2024, which led to a 38% depreciation of the national currency, the Egyptian pound, after securing over $50 billion in international financing. This action, along with strategic agreements with the IMF, World Bank, EU, and Gulf states, improved Egypt’s credit outlook. The government also implemented fiscal measures to raise the tax-to-revenue ratio and accelerate the privatization of state-owned companies to strengthen public finances. As a result, in the final quarter of 2024, private investment in Egypt exceeded public investment for the second consecutive quarter, accounting for more than half of the total investment volume. Private investment rose by 35.4% year-on-year, while public investment declined by 25.7%. This shift represents a significant rebalancing of Egypt's economic landscape, marking a notable departure from the dominance of public investments in the country's recent economic history.