Economy—overview: At the end of the 1980s Egypt faced problems of low productivity and poor economic management compounded by the adverse social effects of excessive population growth high inflation and massive urban overcrowding. In the face of these pressures in 1991 Egypt undertook wide-ranging macroeconomic stabilization and structural reform measures. This reform effort has been supported by three successive IMF arrangements the last of which was concluded in October 1996. Egypt's reform efforts—and its participation in the Gulf war coalition—also led to massive debt relief under the Paris Club arrangements. Although the pace of reform has been uneven and slower than envisaged under the IMF programs substantial progress has been made in improving macroeconomic performance. Budget deficits have been slashed while foreign reserves in 1997 were at an all-time high. And Egypt has been moving toward a more decentralized market-oriented economy. These economic reforms and growing investment opportunities have prompted increasing foreign investment but incoming capital has largely been concentrated in stock market portfolio flows. Egypt's economy also has been hit by a sharp downturn in tourism—a key foreign exchange and job producing sector—following the 17 November 1997 massacre of foreign tourists at Luxor. Although Egypt will probably regain these revenues over time the slump in tourism is likely to slow the GDP growth rate in 1998.

GDP: purchasing power parity—$267.1 billion (1997 est.)

GDP—real growth rate: 5.2% (1997 est.)

GDP—per capita: purchasing power parity—$4 400 (1997 est.)

GDP—composition by sector:
agriculture: 17%
industry: 32%
services: 51% (1996)

Inflation rate—consumer price index: 4.9% (1997)

Labor force:
total: 17.4 million (1996 est.)
by occupation: agriculture 40% services including government 38% industry 22% (1990 est.)

Unemployment rate: 9.4% (1997 est.)

Budget:
revenues: $19.2 billion
expenditures: $19.8 billion including capital expenditures of $4 billion (FY96/97 est.)

Industries: textiles food processing tourism chemicals petroleum construction cement metals

Industrial production growth rate: 8.5% (1996 est.)

Electricity—capacity: 13.04 million kW (1995)

Electricity—production: 48.5 billion kWh (1995)

Electricity—consumption per capita: 778 kWh (1995)

Agriculture—products: cotton rice corn wheat beans fruits vegetables; cattle water buffalo sheep goats; annual fish catch about 140 000 metric tons

Exports:
total value: $5.1 billion (f.o.b. FY96/97 est.)
commodities: crude oil and petroleum products cotton yarn raw cotton textiles metal products chemicals
partners: EU US Japan

Imports:
total value: $15.5 billion (c.i.f. FY96/97 est.)
commodities: machinery and equipment foods fertilizers wood products durable consumer goods capital goods
partners: US EU Japan

Debt—external: $30.5 billion (1996/97 est.)

Economic aid:
recipient: ODA $1.713 billion (1993)

Currency: 1 Egyptian pound (£E) = 100 piasters

Exchange rates: Egyptian pounds (£E) per US$1—3.4 (November 1994) 3.369 (November 1993) 3.345 (November 1992); market rate—3.3880 (January 1998) 3.3880 (1997) 3.3880 (1996) 3.3900 (1995) 3.3910 (1994) 3.3718 (1993)

Fiscal year: 1 July—30 June