|
|
| Egypt Flights Home » Egypt Economy
|
|
Egypt Economy |
|
To a large extent Egypt’s economy depends on agriculture, petroleum exports, tourism industry and also media. Located on the northeast part of the African continent, Egypt is divided by the fertile Nile valley, where the majority of the country’s economic activities take place. With the Aswan High Dam being completed in 1971 and the formation of Lake Nasser, the Nile River in Egypt’s agriculture and ecology has changed. An every increasing population, inadequate arable land, and reliance on the Nile together over taxed the resources as well as stressed Egypt’s economy.
The government has made great efforts to prepare the Egypt economy for the new millennium through various economic reform and huge investments in the physical infrastructure and communications. In year 2005, under Ahmed NAZIF's government corporate and personal tax rates were reduced, energy subsidies were reduced, and several enterprises were privatized. All this led to a flourishing stock market, and GDP grew approximately by 5% per year in 2005-06, and was at its height at 7% in 2007.
In spite of these accomplishments, the Egypt government was unable to raise standard of living for the average Egyptian, and therefore has had to keep providing subsidies for necessary items. Since the year 1979, Egypt has been receiving monetary aid from the U.S. However Egypt’s main revenue is generated through tourism and also the traffic that pass through the Suez Canal.
Natural Resources in Egypt
There is a well developed energy market in Egypt, which is based on natural gas, oil, coal, and hydro power. In the north-east Sinai, there are sizeable coal deposits are found. The western desert regions, the Nile Delta and the Gulf of Suez, are places in Egypt where oil and gas are produced. There are huge gas reserves in Egypt, which was estimated at more than 1,100,000 cubic meters in the 1990s. The natural resources contribute to the Egypt economy to large extent.
|
Economic Sectors in Egypt
The three major sectors that play a significant role in Egypt economy include agriculture, industry and services sector. The services sector makes the highest contribution to the country GDP. In the year 2007 it was estimated to be at 45.1% followed by industries and agricultural sectors. The major industries in Egypt include chemicals, pharmaceuticals, textiles, tourism, food processing, hydrocarbons, cement, metals and light manufactures. In terms of agriculture the main products include rice, corn, wheat, cotton, fruits, vegetables; water buffalo, cattle etc.
For more updates on Egypt Economy, visit the related links provided on www.egyptflightshub.com
|
|
|
|
|
|
|
