The Sphinx's enigma: testing Egypt's political and economic stability again
D3
SENSITIVE RISK for entreprise
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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Financing risk
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Economic risk
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Business environment risk
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Political risk
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Commercial risk
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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 |
Strengths & Weaknesses
![Strenghts](/content/onemarketing/aztrade/allianz-trade_com/en_global/economic-research/country-reports/Egypt/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co/grid-0-par/wrapper_copy_copy/wrapper/image.img.82.3360.png/1720687529774/plus.png)
- 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](/content/onemarketing/aztrade/allianz-trade_com/en_global/economic-research/country-reports/Egypt/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co/grid-1-par/wrapper_copy/wrapper/image.img.82.3360.png/1720687542983/minus.png)
- 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
Economic Overview
Trade structure by destination/origin
(% of total, 2021)
Exports | Rank | Imports |
---|---|---|
United States
6.9%
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1 |
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Saudi Arabia
6.8%
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2 |
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India
6.6%
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3 |
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Italy
6.1%
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4 |
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Türkiye
6.1%
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5 |
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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
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Vegetables and fruits
8.4%
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2 |
6.6%
Road vehicles
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Gas, natural and manufactured
8.3%
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3 |
6.2%
Cereals and cereal preparations
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Fertilizers other than group 272
5.4%
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4 |
4.7%
Medicinal and pharmaceutical products
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Articles of apparel & clothing accessories
4.8%
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5 |
4.1%
Plastics in primary forms
|
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