The Sphinx's enigma: testing Egypt's political and economic stability again

D3

SENSITIVE RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Updated in January 2024.  

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GDP USD476.7bn (World Ranking 32, World Bank 2022)
Population 111.0mn (World Ranking 14, World Bank 2022)
Form of state Semi-presidential Republic
Head of state Abdel Fattah EL-SISI (President)
Next elections 2025, legislative
Strenghts
  • Domestic and foreign investments in infrastructure and construction, as well as positive demographics, drive high economic growth rates, despite structural challenges
  • Access to alternative financing has improved, including modest privatizations and different markets, such as the Panda bonds
  • Suez-related revenues and tourism receipts  contribute to a relatively balanced current  account, showcasing the country’s ability to  stabilize key income sourcess
Weaknesses
  • High inflation rates, particularly for food prices, pose a significant challenge to the economy, impacting purchasing power and creating difficulties in managing foreign exchange reserves
  • Potential for social unrest, driven by issues such as youth unemployment, currency depreciation and geopolitical tensions, poses a risk to political stability
  • A decrease in Suez Canal and tourism revenues due to regional conflicts may add to existing challenges in accessing diverse funding sources due to high global interest rates, large credit  default swap spreads and a difficult dialogue with the IMF, ultimately leading to a sovereign default

Trade structure by destination/origin

(% of total, 2021)

Exports Rank Imports
United States 6.9%
1
17.5% China
Saudi Arabia 6.8%
2
9.4% Saudi Arabia
India 6.6%
3
6.7% United States
Italy 6.1%
4
5.1% Germany
Türkiye 6.1%
5
4.7% Türkiye

Trade structure by product

(% of total, 2021)

Exports Rank Imports
Petroleum, petroleum products and related materials 21.0%
1
9.9% Petroleum, petroleum products and related materials
Vegetables and fruits 8.4%
2
6.6% Road vehicles
Gas, natural and manufactured 8.3%
3
6.2% Cereals and cereal preparations
Fertilizers other than group 272 5.4%
4
4.7% Medicinal and pharmaceutical products
Articles of apparel & clothing accessories 4.8%
5
4.1% Plastics in primary forms
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