Egypt’s unemployment rate as of
Steven Wyble is online content editor at Scotsman Guide Media.
Reach him at (800) 297-6061 or email@example.com.
Steeped in ancient history, Egypt — the third largest economy in the Arab world —
nonetheless faces a host of modern challenges, including high inflation and high
unemployment. But the country also holds the potential for enormous growth in the
In 2016, Egypt devalued its currency as a condition for receiving a $12 billion loan from
the International Monetary Fund (IMF). Additionally, the country’s central bank hiked
interest rates by 300 basis points to curtail inflation. Although the moves were expected
to cause short-term economic turmoil, they were deemed necessary for long-term growth.
That growth may be coming to fruition. Egypt is on the cusp of becoming one of the
world’s fastest-growing economies, behind only Uganda and India, according to a
report from Harvard University’s Center for International Development. The country’s
annual gross domestic product (GDP) growth rate could reach 6. 63 percent by 2026,
the report states.
Egypt has long been plagued by a high inflation rate, but in April 2018, inflation dropped
to 13.1 percent — its lowest level since May 2016. That was down from 14. 4 percent this
past February, Bloomberg News reported. The International Monetary Fund expects
inflation to decline to single digits by 2019. Egypt’s GDP expanded by 5 percent in 2017,
the country’s highest growth rate since 2010, according to Trading Economics.
In May, Egypt’s finance minister announced a plan to reduce the country’s deficit
from around 108 percent of GDP in 2017 to 80 percent by 2020. The plan also calls
for increasing the average per-capita income as part of an effort to improve overall
Real estate investment in Egypt has flourished, as real estate is seen as more stable
than alternative investments and has proven resilient in the face of changing monetary
policy, according to a report from real estate research company JLL. Developers have
faced higher construction costs, however, because of the increased cost of imported
materials and additional taxes, JLL states.
Egypt’s economic reform program has played a critical role in stabilizing the economy,
according to the IMF, which says Egypt’s economic outlook is favorable, as long as
the country maintains its “prudent macroeconomic policies” and expands pro-growth
reforms. The IMF says Egypt also must implement policies strengthening the private
sector to solidify its recent gains and promote job growth.
Unemployment remains one of Egypt’s biggest problems, although the situation
is improving. The country’s unemployment rate dropped to 11. 3 percent in fourth-quarter 2017, down from 11. 9 percent in the prior quarter and well below the all-time
high of 13. 4 percent in third-quarter 2013, Trading Economics data show. But the
country’s working-age population is expected to expand 20 percent by 2028, which
will put its labor force at 80 million people, making job growth a top priority. n
By Steven Wyble
Egypt’s GDP growth rate for 2017
Egypt’s inflation rate as of