According to Trading Economics global macro models and analysts, Egypt’s GDP per capita is anticipated to reach 3050.00 USD by the end of 2021. According to our econometric models, Egypt’s GDP per capita is expected to rise to roughly 3170.00 USD in 2022.
What is Egypt’s population per capita?
Egypt’s 2020 GDP per capita was $3,548, up 17.51 percent from 2019. Egypt’s GDP per capita in 2019 was $3,019, up 19% over the previous year. Egypt’s 2018 GDP per capita was $2,537, up 3.8 percent from 2017.
What is Egypt’s average income?
How much does the average Egyptian earn? Egypt’s average wage is $8,318.73 (133,890 EGP) per year, $693.48 (11,158 EGP) each month, or $3.97 (64 EGP) per hour. In terms of Egyptian cities, Cairo workers make $8,839.74 per year, while Alexandria workers earn $8,033.65 per year.
Is Egypt a developing nation?
Despite its status as a middle-income country, Egypt is confronted with a number of long-standing development issues. According to HIECS data, Egypt’s income poverty rate climbed from 27.8% in 2015 to 32.5 percent in 2018, with 32 million individuals living below the national poverty threshold.
What is the formula for calculating GDP per capita?
How Is GDP Per Capita Calculated? GDP per capita is calculated by dividing a country’s gross domestic product (GDP) by its population. This figure represents a country’s standard of living.
Why is Egypt so prosperous?
Egypt’s economy used to be highly centralized, with President Gamal Abdel Nasser (19541970) focusing on import substitution. The economy has followed Egypt’s 2030 Vision under President Abdel Fattah el-administration Sisi’s (2014present). The goal of the policy is to diversify Egypt’s economy. As of 2021, the country’s economy was the second largest in Africa after Nigeria in terms of nominal GDP, sixth largest in the Middle East, and 36th in the globe.
The rapid pace of structural reforms (fiscal and monetary policies, taxation, privatization, and new business legislation) has aided Egypt’s transition to a more market-oriented economy and stimulated significant foreign investment since the 2000s. The macroeconomic annual growth results have been strengthened as a result of the changes and initiatives. As Egypt’s economy recovered, more pressing challenges such as unemployment and poverty began to fade. Political stability, proximity to Europe, and rising exports all benefit the country. It has a strong currency as well. Egypt is stable and well-supported by external parties, according to investors.
Is Egypt’s economy in good shape?
Egypt’s economy has grown steadily and steadily since the start of economic reforms in 2016. Despite the negative impact of the COVID19 pandemic, it is one of the few African countries anticipated to develop at a positive rate in 2020, at 3.6 percent. Due to strong domestic spending, the economy grew at a slower pace than in 2019 (5.6 percent), but did not enter a recession. From mid-March until 1 July 2020, the tourism sector, which accounts for around 5.5 percent of GDP and 9.5 percent of jobs, was shut down. Despite pandemic-related spending and revenue shortfalls, the fiscal balance is predicted to remain positive, at 0.5 percent of GDP, excluding the cost of government debt. This fiscal buffer, which was created as a result of the fiscal consolidation legislation, helped keep the total deficit at 8% of GDP in 2020, compared to a 7.9% deficit in 2019 that benefited from a 2% primary surplus. The public debt is expected to rise to 90.6 percent of GDP in 2020, up from 86.6 percent in 2019, reversing a three-year downward trend. Exports declined 6% in the first half of 2020, while imports fell 21%, helping to reduce the current account deficit to 3.1 percent of GDP in 2020, down from 3.6 percent the year before. The lower current account deficit reflected the strength of remittances, which are expected to account for 8% of GDP in 2020. Egypt had a period of double-digit inflation after switching to a flexible exchange rate regime in 2016, but inflationary pressures have been drifting downward since the summer of 2017. Price pressures were restrained in 2020, particularly on food items, and inflation fell to 5.7 percent from 13.9 percent in 2019, allowing monetary policy to be more accommodating. The Bank of Egypt decreased the overnight lending rate by 300 basis points on 16 March 2020, another 50 basis points on 24 September, and to 9.25 percent on 12 November to promote economic activity.
Because of persistent deterioration in net exports, mostly tourism receipts, real GDP growth is predicted to decelerate to 3% in 2021. Due to the closure of international airports and restrictions on local travel, tourism profits, which accounted for 25% of exports in 2019, are expected to fall in 2020. In the short term, the tourism forecast is still bleak. Overall, due to the negative external environment, exports are expected to remain sluggish in 2021, notably in Europe, which accounts for 35.5 percent of Egypt’s exports and is the main source of tourists. Similarly, private investment may be modest in 2021, but will profit in the medium term from the improving investment climate. Private consumption will continue to be the primary source of growth. Egypt’s reform momentum must be maintained in order to dynamize the private sector and boost inclusive growth. Inflation is likely to rise only marginally in 2021, therefore monetary policy should remain accommodating.
Foreign investors flocked to the local debt market once the capital account was liberalized in 2016. The epidemic, however, resulted in a large reversal of capital flows, putting strain on reserves and the current account. Egypt’s already significant refinancing demands were compounded by the pandemic, with 60 percent of the country’s public debt maturing in one year or fewer. Egypt used funds from COVID19-related facilities to cover the funding shortfall. The International Monetary Fund gave it $8 billion ($2.8 billion from the coronavirus quick financing effort and $5.2 billion from a one-year stand-by agreement). The World Bank contributed $450 million, while the African Development Bank contributed $300 million. The country again used the foreign capital market on May 21, 2020, when it issued a $5 billion bond, its largest to date, which was heavily oversubscribed. Foreign exchange reserves increased to $40.06 billion at the end of 2020, thanks to credit facilities from international financial institutions and bond issuances. Although external debt increased to 36% of GDP, the fresh borrowing helped to extend the average debt maturity. In 2021, total public debt is expected to rise to 90.6 percent of GDP before steadily decreasing to 77.2 percent by 2025. To manage refinancing risk and limit rollover risk, Egypt must extend the term of its debt and diversify its investor base. Furthermore, the country must continue to adopt structural changes in order to boost private sector development and mobilize local resources.
Egypt has what kind of economy?
Egypt is a North African country that shares boundaries with the Red Sea and the Mediterranean Sea. Libya, the Gaza Strip, and Sudan are all close neighbors. The Sahara Desert, the Libyan Desert, and the Nile River, which runs from south to north, are all part of Egypt. The government is a republic, with the president as the chief of state and the prime minister as the head of government. Egypt has a mixed economic system, with a mixture of private liberty and centralized economic planning and government regulation. Egypt is a member of the Arab League as well as the Common Market for Eastern and Southern Africa (COMESA) (COMESA).