section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  Egypt's economy depends mainly on agriculture, media, petroleum exports, natural gas, and tourism. There are also more than three million Egyptians working abroad, mainly in Libya, Saudi Arabia, the Persian Gulf and Europe. The completion of the Aswan High Dam in 1970 and the resultant Lake Nasser have altered the time-honoured place of the Nile River in the agriculture and ecology of Egypt. A rapidly growing population, limited arable land, and dependence on the Nile all continue to overtax resources and stress the economy.
  
  In 2022, the Egyptian economy entered an ongoing crisis, the Egyptian pound was one of the worst performing currencies, inflation. reached 32.6% and core inflation reached nearly 40% in March.
  
  The government has invested in communications and physical infrastructure. Egypt has received United States foreign aid since 1979 (an average of $2.2 billion per year) and is the third-largest recipient of such funds from the United States following the Iraq war. Egypt's economy mainly relies on these sources of income: tourism, remittances from Egyptians working abroad and revenues from the Suez Canal.
  
  In recent years, the Egyptian army has expanded its economic influence, dominating sectors such as petrol stations, fish-farming, car manufacturing, media, infrastructure including roads and bridges, and cement production. This hold on various industries has resulted in a suppression of competition, deterring private investment, and leading to adverse effects for ordinary Egyptians, including slower growth, higher prices, and limited opportunities. The military-owned National Service Products Organization (NSPO) continues its expansion by establishing new factories dedicated to producing fertilisers, irrigation equipment, and veterinary vaccines. Businesses operated by the military, such as Wataniya and Safi, which manage petrol stations and bottled water, respectively, remain under government ownership.
  
  Economic conditions have started to improve considerably, after a period of stagnation, due to the adoption of more liberal economic policies by the government as well as increased revenues from tourism and a booming stock market. In its annual report, the International Monetary Fund (IMF) has rated Egypt as one of the top countries in the world undertaking economic reforms. Some major economic reforms undertaken by the government since 2003 include a dramatic slashing of customs and tariffs. A new taxation law implemented in 2005 decreased corporate taxes from 40% to the current 20%, resulting in a stated 100% increase in tax revenue by 2006.
  
  Although one of the main obstacles still facing the Egyptian economy is the limited trickle down of wealth to the average population, many Egyptians criticise their government for higher prices of basic goods while their standards of living or purchasing power remains relatively stagnant. Corruption is often cited by Egyptians as the main impediment to further economic growth. The government promised major reconstruction of the country's infrastructure, using money paid for the newly acquired third mobile license ($3 billion) by Etisalat in 2006. In the Corruption Perceptions Index 2013, Egypt was ranked 114 out of 177.
  
  An estimated 2.7 million Egyptians abroad contribute actively to the development of their country through remittances (US$7.8 billion in 2009), as well as circulation of human and social capital and investment. Remittances, money earned by Egyptians living abroad and sent home, reached a record US$21 billion in 2012, according to the World Bank.
  
  Egyptian society is moderately unequal in terms of income distribution, with an estimated 35–40% of Egypt's population earning less than the equivalent of $2 a day, while only around 2–3% may be considered wealthy.