Editing Economy of Egypt (section)

== History ==
===Ancient Egypt===
{{More|Ancient Egypt#Government and economy}}
[[File:Le_Jardin_de_Nébamoun.jpg|thumb|left|Rectangular fishpond with ducks and [[Lotus (plant)|lotus]] planted round with date palms and fruit trees, [[Tomb of Nebamun]], Thebes, 18th Dynasty]]
The economy in [[ancient Egypt]] was deeply embedded in its centralized state structure, with the pharaoh exercising theoretical control over all land and resources. Wealth was managed and redistributed through a network of temples and granaries overseen by appointed officials, particularly the [[vizier]], who supervised land surveys, tax collection, and resource allocation. While coinage was not used until the [[Late Period of ancient Egypt|Late Period]], Egyptians relied on a barter-based economy, where standardized values, such as sacks of grain and copper deben, were used for wages and trade. Laborers received monthly grain rations, and a fixed price system regulated commerce throughout the kingdom.{{sfnp|Manuelian|1998|pp=358, 361, 363, 372}}{{sfnp|Meskell|2004|p=23}}

Agriculture formed the foundation of the economy, sustained by the annual [[flooding of the Nile]], which deposited nutrient-rich silt on the fields. The state taxed agricultural production according to the land owned, and farmers were obligated to provide both goods and labor through a corvée system. [[Emmer]] and [[barley]] were the primary staples, used to make bread and beer, while [[flax]] provided [[linen]] for clothing. [[Papyrus]] was harvested for writing material, and vegetables such as [[leeks]], [[garlic]], [[melons]], and [[pulses]] were cultivated alongside fruits like [[grapes]] and [[Date palm|dates]]. Additional goods included [[textiles]], [[beer]], [[wine]], [[honey]], and [[leather]], many of which were produced in temple workshops. Livestock, such as [[cattle]], [[poultry]], [[donkeys]], and [[bees]], played vital economic and ritual roles, while natural resources like [[copper]], [[gold]], [[alabaster]], and [[granite]] were extracted through state-controlled expeditions.{{sfnp|Manuelian|1998|p=381}}{{sfnp|Nicholson|Shaw|2000|pp=28, 409, 510, 514, 577, 630}}{{sfnp|Lucas|1962|p=413}}{{sfnp|Greaves|Little|1930|p=123}}

===Greco-Roman period===
{{More|Ptolemaic Kingdom#Economy|Roman Egypt#Economy}}
[[File:Cleopatra Mint Alexandria.jpg|thumb|left|A silver coin of 40 [[Ancient drachma|drachmai]] (1 obol) minted in [[Alexandria]] between 51 and 30 BC, with [[Cleopatra VII]] depicted on the obverse, and an eagle on a thunderbolt with the inscription "{{lang|grc|ΒΑΣΙΛΙΣΣΗΣ ΚΛΕΟΠΑΤΡΑΣ}}" ([[Basileus|Basilissēs]] Kleopatras) on the reverse.<ref>{{Cite web |title=CoinArchives.com Search Results: drachmai |url=https://www.coinarchives.com/a/results.php?search=drachmai |access-date=17 May 2024 |website=www.coinarchives.com}}</ref>]]
[[Ptolemaic Egypt]] blended traditional agrarian systems with new fiscal and administrative reforms.<ref name="manningGR" /> The economy produced [[wheat]], [[flax]], [[wine]], and [[textiles]], with state control over [[beer]], [[food oil|oil]], and [[salt]]. Agriculture, organized around the Nile’s flood cycle, remained central.<ref name="manningGR" /> The early Ptolemies implemented extensive land reclamation where immigrant [[Greeks]] and military settlers were granted privileged access to land, while native [[Egyptians]] were pushed into subordinate roles with limited protections.<ref name="manningGR" /> Greeks also dominated Hellenic urban centers and [[viticulture]], while the administrative spread of the [[ancient Greek|Greek language]] displaced [[Demotic Egyptian|Demotic]], restricting Egyptian access to legal and bureaucratic institutions.<ref name=manningGR>{{cite book | last=Manning | first=J.G. | chapter=The Ptolemaic Economy | editor1-last=Morris | editor1-first=Ian | editor2-last=Saller | editor2-first=Richard | editor3-last=Scheidel | editor3-first=Walter | title=The Cambridge Economic History of the Greco-Roman World | publisher=Cambridge University Press | date=2004 | location=Cambridge | url=https://cega.berkeley.edu/wp-content/uploads/2016/04/1_Manning_The-Ptolemaic-Economy.pdf | access-date=2025-04-16 }}</ref>

The state developed a complex and unequal tax system on land, produce, labor, and individuals, collected via granaries and banks.<ref name="manningGR" /> Taxation favored Greeks through exemptions and privileges, while Egyptians faced heavier burdens.<ref name="manningGR" /> Temples retained economic significance but lost autonomy under centralized administration.<ref name="manningGR" /> Early Ptolemaic Egypt experienced a notable degree of prosperity, driven by land reclamation, urban expansion, and the growth of fiscal and agricultural systems, though this development was ultimately constrained by institutional rigidity and entrenched social inequality, contributing to later unrest.<ref name=manningGR/>

During the Greco-Roman and Byzantine periods, Egypt, particularly Upper Egypt, became renowned for its textile production.<ref name=":0" /> Workshops across the country produced what came to be known as ''Coptic textiles'', characterized by intricate designs, vivid colors, and techniques such as tapestry weaving.<ref name=":0" /> These textiles preserved elements of Pharaonic craftsmanship while integrating Greco-Roman stylistic influences.<ref name=":0" /> In the Byzantine period, linen and woolen textiles featuring geometric, vegetal, and figural motifs flourished, forming the artistic and technical foundation for Egypt’s later Islamic textile industry, which adopted and adapted many of these decorative traditions.<ref name=":0">{{cite journal |last=Edwards |first=Evan |last2=Farag |first2=Neven |title=Fayoum Textiles Features during Tulunid Period (868–905 AD) |journal=Minia Journal of Tourism and Hospitality Research |volume=7 |issue=1/1 |year=2019 |pages=55–78 |url=https://tour.minia.edu.eg/Files/magalaa/512019.pdf |access-date=2025-04-16 }}</ref>

===Middle Ages===
{{Also|Egypt in the Middle Ages}}
Beginning in the early Islamic period, Egypt’s countryside was incorporated into a broader administrative and fiscal structure that facilitated the movement of goods and surplus to urban centers.<ref name=":4" /> By the 11th and 12th centuries, this integration had developed into a dynamic economic relationship between rural producers and commercial networks.<ref name=":4" /> Villages produced [[grain]], [[flax]], [[Indigo dye|indigo]], [[sugar]], and [[linen|linen textiles]], much of which was sent to [[Fustat]], the primary urban hub for redistribution.<ref name=":4" /> Documents from the [[Cairo Geniza]] reveal that rural merchants and producers were involved in long-distance trade linking Egypt to the [[Mediterranean]] and the [[Indian Ocean]].<ref name=":4">{{cite journal |last=Udovitch |first=A.L. |title=International Trade and the Medieval Egyptian Countryside |journal=Proceedings of the British Academy |volume=96 |pages=267–284 |year=1998 |url=https://www.thebritishacademy.ac.uk/documents/3882/96p267.pdf |access-date=2025-04-16 }}</ref>

The textile industry was a foundational component of Egypt’s economy during the Middle Ages, integrating agriculture, manufacturing, and commerce.<ref name=":5" /> Flax was widely cultivated, and its transformation into linen textiles constituted a major branch of productive activity.<ref name=":5" /> Textile production involved both privately organized enterprise and operations connected to government institutions. In addition to being a leading export commodity, textiles also circulated within the domestic economy as a means of exchange and a store of value.<ref name=":5" /> Egypt’s prosperity during this period depended not only on its role in international trade but also on the internal scale and organization of its textile production.<ref name=":5">{{cite journal |last=Frantz-Murphy |first=Gladys |title=A New Interpretation of the Economic History of Medieval Egypt: The Role of the Textile Industry 254–567/868–1171 |journal=Journal of the Economic and Social History of the Orient |volume=24 |issue=3 |year=1981 |pages=274–297 |jstor=3631908 }}</ref>[[File:Mamluk Carpet, Egypt - Google Art Project.jpg|thumb|left|229x229px|A [[Mamluk Sultanate|Mamluk]]-era wool carpet from Egypt, {{Circa|1500}}–1550.]]Patterns of saving and investment during this period reflected a high degree of economic organization.<ref name=":6" /> Wealth was accumulated through land, textiles, and monetary holdings, and often reinvested into productive activities such as textile manufacture, agriculture, and trade.<ref name=":6" /> The integration of these practices into everyday economic life highlights the structured financial environment that characterized medieval Egypt.<ref name=":6">{{cite journal |last=Frantz |first=Gladys M. |title=Saving & Investment in Medieval Egypt |journal=Business and Economic History |volume=8 |year=1979 |pages=110–113 |jstor=23702597}}</ref>
In the fifteenth century, Egypt experienced a series of economic and financial crises under the [[Mamluk Egypt|Mamluk regime]], marked by inflation, currency instability, and fiscal disorder.<ref name=":7" /> Contemporary scholars such as [[al-Maqrizi]] and al-Asadi offered detailed assessments of the causes and proposed reforms.<ref name=":7" /> Al-Maqrizi identified the debasement of the currency and the overreliance on copper coinage as central problems, advocating a return to the use of gold and silver standards.<ref name=":7" /> Al-Asadi presented a broader analysis, attributing the crisis to both monetary mismanagement and deeper structural inequalities, including the concentration of wealth and administrative corruption.<ref name=":7">{{cite journal |last=Islahi |first=Abdul Azim |title=Economic and Financial Crises in Fifteenth-Century Egypt: Lessons From the History |journal=Islamic Economic Studies |volume=21 |issue=2 |year=2013 |pages=71–92 |url=https://mpra.ub.uni-muenchen.de/61798/1/MPRA_paper_61798.pdf |access-date=2025-04-16 }}</ref>

===Early modern period=== 
Egypt’s earliest industrial efforts began under [[Muhammad Ali of Egypt|Muhammad Ali]] (r. 1805–1849), whose state-led program focused on military goods, agricultural processing, and textiles.<ref name="MERIP" /> By the 1830s, 30 cotton mills employed around 30,000 workers, but the experiment collapsed due to poor management, fuel shortages, and reliance on forced corvée labor.<ref name="MERIP" /> Though short-lived, this phase weakened traditional artisan guilds and introduced wage labor.<ref name="MERIP" /> A later wave under [[Isma'il Pasha]] (r. 1863–1879), sparked by the [[American Civil War]] cotton boom, saw attempts at diversification with sugar refineries and textile plants.<ref name="MERIP" /> These too struggled against European competition, but they helped expand Egypt’s wage labor force and laid foundations for a modern working class.<ref name="MERIP">{{cite web |last=Beinin|first=Joel|title=Formation of the Egyptian Working Class |url=https://merip.org/1981/01/formation-of-the-egyptian-working-class/ |website=MERIP |date=January 1981 |access-date=17 April 2025}}</ref>

Between 1869 and 1876, Ismail launched British-led military campaigns against Sudanese slave raiders, as part of broader efforts to reassert Egyptian authority in Sudan.<ref name=":8" /> The process culminated in the signing of the [[Anglo-Egyptian Slave Trade Convention]] in 1877, which formally ended the practice of slavery and slave trade in Egypt.<ref name=":8" /> Ismail’s increasing political subordination to Britain, particularly after Egypt's default on its international debt in 1876, likely facilitated the agreement.<ref name=":8">{{Cite journal |last=Saleh |first=Mohamed |date=2024 |title=Trade, Slavery, and State Coercion of Labor: Egypt during the First Globalization Era |url=https://www.cambridge.org/core/journals/journal-of-economic-history/article/trade-slavery-and-state-coercion-of-labor-egypt-during-the-first-globalization-era/E2856D1AF5D5A75DD41204C20A67C752 |journal=The Journal of Economic History |volume=84 |issue=4 |pages=1107–1141 |language=en |doi=10.1017/S002205072400038X |issn=0022-0507}}</ref>

By the late 19th century, a clearer working class began to emerge. This was shaped by Egypt’s integration into the global capitalist economy under foreign control, especially following the [[History of Egypt under the British|British occupation in 1882]].<ref name="MERIP" /> European capital, attracted to Egypt’s export sector, invested heavily in transport and utilities, prompting the development of urban infrastructure but neglecting broader industrialization.<ref name="MERIP" /> Employment in these sectors, especially railways, ports, and public utilities, formed the nucleus of the new working class.<ref name="MERIP"/>
[[File:ModernEgypt, Fouad I, DHP13402-1-12 01.jpg|thumb|[[King Fuad I]] with his ministers on a visit to the phosphate mines in the [[Red Sea Governorate|Red Sea region]].]]
Legal reforms under Muhammad Ali and his successors enabled land privatization, displacing a third of the peasantry by the late 19th century.<ref name="MERIP" /> Many had migrated to cities, joining an expanding pool of wage laborers. Meanwhile, the rise of foreign capital eroded Egypt’s artisan guilds, particularly after the 1890 Professional Permits Duty.<ref name="MERIP" /> Guilds fractured, with guild heads becoming labor contractors and members reduced to common laborers, leading to tensions culminating in early labor unrest such as the 1882 Port Said coal loaders' strike.<ref name="MERIP"/>

By the early 20th century, guild-based trades had collapsed, leading to a notable increase in wage labor.<ref name="MERIP" /> Foreign skilled workers, mainly Greeks, Armenians, and Italians, introduced European labor ideologies and led early strikes in sectors like cigarettes, tailoring, and printing.<ref name="MERIP" /> However, wage disparities and employer manipulation often hindered unity with Egyptian workers.<ref name="MERIP" /> Strikes in the tram and railway sectors fostered unionization and greater class awareness, especially during the 1908 and 1911 Cairo tram strikes, which drew harsh repression and led to martial law in 1914.<ref name="MERIP"/>

Despite several waves of industrial experimentation, early attempts at industrialization struggled due to factors like [[tariff]] restrictions imposed by Britain through the [[Treaty of Balta Liman|1838 commercial treaty]]. In the beginning of the 20th century, little industrial development occurred, and Egypt's land-owning elite invested mainly in land rather than industry.<ref name=":1">{{citation-attribution|1={{cite encyclopedia|title=Egypt: a country study|publisher=[[Federal Research Division]], [[Library of Congress]]|location=Washington, D.C.|url=https://www.loc.gov/item/91029876/|last=Elmusa|first=Sharif S.|date=1991|editor-last=Metz|editor-first=Helen Chapin|editor-link=Helen Chapin Metz |edition=5th|pages=157–159|isbn=0-8444-0729-1|oclc=24247439|entry=The Economy}}}}</ref> Foreign competition stunted domestic ventures, with only a few enterprises, such as sugar and cotton processing, surviving under foreign ownership.<ref name=":1" /> In the following years, over one million Egyptians would be conscripted to the [[Egyptian Labour Corps]] and [[Egyptian Camel Transport Corps]] to support British efforts in World War I, often through coercion.<ref name="MERIP" /> Simultaneously, wartime shortages fostered growth in domestic industries such as textiles and food processing, prompting the establishment of the Commission of Commerce and Industry in 1916.<ref name="MERIP"/> 
[[File:Talaat Harb.jpg|thumb|left|170px|[[Talaat Harb]], widely regarded as the father of the modern Egyptian economy<ref name="talaatharb" />]]
By the 1920s, Egypt’s urban labor force had grown significantly, supported by a limited but increasing domestic industrialization under a wave of economic nationalism<ref name="MERIP"/> pioneered in large part by [[Talaat Harb]], an Egyptian financier. In 1920, Harb founded [[Banque Misr]], the country’s first national bank funded entirely with Egyptian capital, with an initial start-up capital of EGP 80,000 (approximately USD 5,000).<ref name="talaatharb" /> Harb envisioned a financial institution that would channel national savings into industrial and economic development.<ref name="talaatharb" /> His efforts marked a turning point in Egypt’s economic history, enabling Egyptians to exert greater control over their country’s financial resources and laying the foundation for national industrialization.<ref name=talaatharb>{{cite web |title=The One-Man Show: Talaat Harb’s Legacy in Egypt |url=https://egyptianstreets.com/2022/03/24/the-one-man-show-talaat-harbs-legacy-in-egypt/ |website=Egyptian Streets |date=24 March 2022 |access-date=17 April 2025}}</ref>

Beyond banking, Harb spearheaded the establishment of multiple industrial and service ventures across textiles, insurance, shipping, real estate, and media.<ref name="talaatharb" /> He founded [[Studio Misr]] in 1935, which became Egypt’s leading film production hub for over three decades, as well as [[EgyptAir]] in 1932, the first airline in the Middle East and the seventh in the world.<ref name="talaatharb" /> Through Banque Misr, he also launched companies in cotton ginning, paper manufacturing, and printing, helping to create a vertically integrated national economy. These initiatives were critical in asserting Egypt’s economic independence and identity during and after the colonial period.<ref name=talaatharb/>

The [[Great Depression]] helped catalyze industrialization, shifting Egypt toward import-substitution industries.<ref name=":1" /> In 1930, the expiration of commercial treaties allowed Egypt to control its tariff policies, fostering local industry.<ref>{{Cite journal |title=Armed Services Technical Information Agency. |url=https://apps.dtic.mil/sti/pdfs/AD0202469.pdf |journal=CIA Declassified Files. |pages=294 |access-date=2 September 2023 |archive-date=2 September 2023 |archive-url=https://web.archive.org/web/20230902193805/https://apps.dtic.mil/sti/pdfs/AD0202469.pdf |url-status=dead }}</ref> On February 16, 1930, Egypt enacted tariff reforms aimed at protecting local industries. The government imposed high duties on imports and reduced taxes on raw materials, encouraging local manufacturing. The changes led to a decline in imports of finished goods and an increase in raw materials and machinery by 1938.<ref>{{Cite journal |title=Armed Services Technical Information Agency. |url=https://apps.dtic.mil/sti/pdfs/AD0202469.pdf |journal=CIA Declassified Files. |pages=296 |access-date=2 September 2023 |archive-date=2 September 2023 |archive-url=https://web.archive.org/web/20230902193805/https://apps.dtic.mil/sti/pdfs/AD0202469.pdf |url-status=dead }}</ref>

[[World War II]] provided a boost to industrialization, with increased demand from Allied forces and local consumers. Many industries diversified, while new enterprises emerged.<ref name=":9" /> The war also trained workers, helping to establish a foundation for local industries that expanded in the post-war period. By 1947, the government enacted laws and established an industrial bank to support industrial growth.<ref name=":9">{{Cite journal |title=Armed Services Technical Information Agency. |url=https://apps.dtic.mil/sti/pdfs/AD0202469.pdf |journal=CIA Declassified Files. |pages=297–298 |access-date=2 September 2023 |archive-date=2 September 2023 |archive-url=https://web.archive.org/web/20230902193805/https://apps.dtic.mil/sti/pdfs/AD0202469.pdf |url-status=dead }}</ref>

===Early Republican period===
In July 1952, the Egyptian monarchy was overthrown in a coup led by the [[Free Officers movement (Egypt)|Free Officers movement]], a group of army officers founded by [[Gamal Abdel Nasser]] and formally headed by General [[Muhammad Naguib]]. The officers held [[King Farouk]] responsible for Egypt’s military defeat in the [[1948 Arab–Israeli War]] and the country's persistent socioeconomic problems, including widespread poverty, illiteracy, and underdevelopment.<ref>{{cite book |last=Beattie |first=Kirk J. |title=Egypt During the Sadat Years |page=2}}</ref> These conditions were underscored by the stagnation of per capita [[gross national product]] (GNP), which averaged {{EGP|43}} in 1954 prices between the end of [[World War I]] and the [[1952 Revolution]].<ref name=":1" /> 

Under [[Gamal Abdel Nasser]], Egypt's economy saw substantial growth driven by agrarian reforms, [[Import substitution industrialization|import substitution]], key nationalisation efforts like the [[Suez Company (1858–1997)|Suez Canal Company]], and major infrastructure projects, including the Helwan steel works and the [[Aswan High Dam]]. This period marked an unprecedented rise in living standards, offering Egyptians access to housing, education, healthcare, and employment.<ref name="Cook111">{{Harvnb|Cook|2011|p=111}}</ref><ref name="Ahram">[http://weekly.ahram.org.eg/2000/501/nasser2.htm Liberating Nasser's legacy] {{webarchive|url=https://web.archive.org/web/20090806232017/http://weekly.ahram.org.eg/2000/501/nasser2.htm |date=2009-08-06 }} ''[[Al-Ahram Weekly]]''. 4 November 2000.</ref><ref name="Cook112">{{Harvnb|Cook|2011|p=112}}</ref>
[[File:Nasser at Helwan car factory.jpg|thumb|left|President [[Gamal Abdel Nasser|Nasser]] at the inauguration of the [[El Nasr Automotive Manufacturing Company|Nasr Automotive]] factory in [[Helwan]]]]
The land reforms of 1952 aimed to weaken the old landowning class and promote industrialization, with Nasser’s government supporting urban workers through labor reforms.<ref name="nasserism" /> The nationalization of key industries occurred between 1957 and 1961, alongside increased public sector control.<ref name="nasserism" /> While the initial economic results were positive, a crisis emerged by the mid-1960s due to the unsustainable combination of rising consumption and investment.<ref name=nasserism>{{cite web | url=https://merip.org/1982/07/egypts-transition-under-nasser/ | title=Egypt's Transition Under Nasser | publisher=MERIP | date=July 1982 | access-date=27 February 2025 }}</ref>

By necessity if not by design, the revolutionary regime gave considerably greater priority to economic development than did the monarchy, and the economy has been a central government concern since then.<ref name=":1" /> While the economy grew steadily, it sometimes exhibited sharp fluctuations.<ref name=":1" /> Analysis of economic growth is further complicated by the difficulty in obtaining reliable statistics.<ref name=":1" /> Growth figures are often disputed, and economists contend that growth estimates may be grossly inaccurate because of the [[informal economy]] and workers' [[remittance]]s, which may contribute as much as one-fourth of GNP.<ref name=":1" /> According to one estimate, the [[gross domestic product (GDP)]], at 1965 constant prices, grew at an annual compound rate of about 4.2 percent between 1955 and 1975.<ref name=":1" /> This was about 1.7 times larger than the annual population growth rate of 2.5 percent in the same period.<ref name=":1" /> The period between 1967 and 1974, the final years of [[Gamal Abdul Nasser]]'s presidency and the early part of [[Anwar Sadat]]'s, however, were lean years, with growth rates of only about 3.3 percent.<ref name=":1" /> The slowdown was caused by many factors, including agricultural and industrial stagnation and the costs of the [[Six Day War|1967 war]].<ref name=":1" /> Investments, which were a crucial factor for the preceding growth, also nose-dived and recovered only in 1975 after the dramatic 1973 increase in oil prices.<ref name=":1" />

[[Anwar Sadat]]’s [[Infitah]], or "Open Door Policy", introduced in 1974, marked a stark departure from Nasser's approach, shifting Egypt toward closer ties with the Western capitalist market.<ref name="nasserism" /> This policy led to the emergence of a new ruling coalition, consisting of technocrats, former landowners, and private-sector entrepreneurs, further solidifying the role of market forces in Egypt's economy.<ref name="nasserism" /> The changes introduced under Sadat's era effectively marked a shift towards capitalist development, contrary to the socialist trajectory some had hoped for following Nasser’s reforms.<ref name=nasserism/>

Like most countries in the Middle East, Egypt partook of the [[oil boom]] and suffered the subsequent slump.<ref name=":1" /> Available figures suggest that between 1975 and 1980 the GDP (at 1980 prices) grew at an annual rate of more than 11 percent.<ref name=":1" /> This impressive achievement resulted, not from the contribution of manufacturing or agriculture, but from oil exports, [[remittance]]s, foreign aid, and grants.<ref name=":1" /> From the mid-1980s, GDP growth slowed as a result of the 1985-86 crash in oil prices.<ref name=":1" /> In the two succeeding years, the GDP grew at no more than an annual rate of 2.9 percent.<ref name=":1" /> Of concern for the future was the decline of the [[fixed investment]] ratio from around 30 percent during most of the 1975-85 decade to 22 percent in 1987.<ref name=":1" />

=== Reform era ===
[[File:Smartvillagelandscape.JPG|thumb|[[Smart Village, Egypt|Smart Village]], a business district in [[6th of October (city)|6th of October]] established in 2001 to facilitate the growth of high-tech businesses.]]

Egypt began implementing structural adjustment reforms in the early 1990s to address a worsening macroeconomic situation marked by low growth, double-digit inflation, unsustainable fiscal and current account deficits, and heavy reliance on import restrictions to protect inefficient, state-led industries.<ref name="achy2010">{{cite web |last=Achy |first=Lahcen |title=The Uncertain Future of Egypt’s Economic Reforms |url=https://carnegieendowment.org/posts/2010/12/the-uncertain-future-of-egypts-economic-reforms |website=Carnegie Endowment for International Peace |date=22 December 2010 |access-date=22 April 2025}}</ref>  These reforms aimed to reduce the country’s rentier-state characteristics by shifting economic control from the public to the private sector.<ref name="achy2010"/>

A major shift occurred in 2004 with the appointment of [[Ahmed Nazif]] as prime minister.<ref name="achy2010" /> His cabinet introduced a new round of reforms, including the restructuring of the banking sector, increasing the private sector share, and widespread privatization of state-owned enterprises.<ref name="achy2010" /> Efforts to reduce the public debt included cutting subsidies and shrinking the government workforce.<ref name="achy2010"/>

In this period Egypt experienced fluctuating economic growth accompanied by shifting patterns of poverty, inequality, and middle-class formation.<ref name="rashdan2021" /> The government undertook major policy reforms, with significant changes in income distribution, and debates over whether economic growth was inclusive or "pro-poor".<ref name="rashdan2021">{{cite journal |last=Rashdan |first=Abeer Mohamed Ibrahim |title=The Puzzle of Middle Class and Growth in Egypt (1990–2008) |journal=Scientific Journal for Financial and Commercial Studies and Researches |volume=2 |issue=2 |pages=1–24 |publisher=Faculty of Commerce, Damietta University |date=July 2021 |url=https://cfdj.journals.ekb.eg/article_146709_1f59f9610942d0a2cfccdc05f207fa96.pdf |access-date=17 April 2025}}</ref>

Despite economic growth, poverty persisted. The proportion of Egyptians living under the national poverty line declined from 24.2% in 1991 to a low of 16.7% in 2000, before rising again to 22% in 2008.<ref name="rashdan2021" /> Similarly, the share of the population living on less than $2 per day (PPP) fell from 28% in 1990 to 15% by 2008. Absolute extreme poverty, defined as living on less than $1.25 per day, remained relatively low at around 2% from 2000 onward.<ref name="rashdan2021" />

{| class="wikitable"
|- style="background:#ccc;"
| '''Indicator'''<ref>{{Cite web|url=https://www.imf.org/external/pubs/ft/weo/2018/02/weodata/weorept.aspx?pr.x=36&pr.y=9&sy=1980&ey=2017&scsm=1&ssd=1&sort=country&ds=.&br=1&c=469&s=NGDPRPC,NGDPPC,NGDPDPC,PPPPC&grp=0&a=|title=Report for Selected Countries and Subjects|website=www.imf.org|access-date=9 December 2018}}</ref> || '''1980''' || '''1990''' || '''2000''' || '''2005''' || '''2010'''
|- style="text-align:right;"
| style="background:#ddd;" | GDP per capita at constant prices, ({{EGP}}) || 9,548.57 || 12,507.81 || 15,437.06 || 16,680.25 || 20,226.91
|- style="text-align:right;"
| style="background:#ddd;" | GDP per capita at current prices, ({{EGP}}) || 406.03 || 1,967.41 || 5,607.67 || 8,003.33 || 16,115.11
|- style="text-align:right;"
| style="background:#ddd;" | GDP per capita at current prices, (US$) || 580.04 || 1,870.85 || 1,642.63 || 1,330.46 || 2,921.76
|- style="text-align:right;"
| style="background:#ddd;" | GDP (PPP) per capita, ([[Int$]]) || 2,252.47 || 4,444.05 || 6,725.83 || 8,137.14 || 10,848.16
|}

The [[Gini index]], a measure of income inequality, remained moderate, fluctuating between 30 and 33.8 over the period. The [[Palma ratio]], which captures the income share of the richest 10% compared to the poorest 40%, declined slightly, indicating marginal improvement in distribution.<ref name="rashdan2021" />

The middle class, however, exhibited a more complex trajectory. Using absolute income thresholds, the middle class appeared to constitute over 80% of the population by 2008.<ref name="rashdan2021" /> Yet, when defined using relative or median-based thresholds, its size appeared far smaller, approximately 40% by some estimates, and even declined during periods of high economic growth.<ref name="rashdan2021" /> This paradox reflected the vulnerability of those just above the poverty line, often labeled as “new strugglers”, who were susceptible to falling back into poverty.<ref name="rashdan2021" />

To stimulate investment and trade, the corporate tax rate was lowered from 40 to 20 percent, and tax collection mechanisms were strengthened. Tariff barriers were drastically reduced, and Egypt entered into preferential trade agreements with the United States, the European Union, several Arab and African neighbors, as well as neighboring states.<ref name="achy2010"/> These changes contributed to an improved business climate and growing investor confidence. Between 2003 and 2008, exports of goods and services tripled, tourism surged by over 60 percent, and foreign direct investment rose by 50 percent in 2007 alone. As a result, Egypt’s external debt declined to less than 20 percent of GDP by 2009.<ref name="achy2010"/>

Although the 2000s were marked by robust macroeconomic growth, the benefits were not evenly distributed. Consumption gains were concentrated among the top decile, while lower quintiles saw marginal improvements.<ref name="rashdan2021" /> Consequently, while poverty indicators improved, public dissatisfaction remained widespread, as large segments of the population perceived limited social mobility or security.<ref name="rashdan2021" /> The disconnect between growth and equitable distribution contributed to mounting discontent in the years leading to the 2011 revolution.<ref name="rashdan2021" />

===2008 financial crisis===
The [[2008 financial crisis]] followed closely by the [[global food crisis]] presented Egypt with significant economic challenges, but it also prompted more integrated policy reforms. Policymakers responded quickly to mitigate the impacts of these shocks, notably adjusting monetary and fiscal policies as well as regulatory frameworks. A moderate [[Financial crisis]] took hold, partly fueled by fear of widespread panic selling, leading to declines in stock and bond markets and increases in nominal interest rates.<ref>{{Cite journal |title=Figure 1.9. Employment in the private and public sectors in the long run |url=https://doi.org/10.1787/888932367833 |access-date=2024-12-12 |website=doi.org|doi=10.1787/888932367833 }}</ref>

Egypt’s population, concentrated within a narrow strip along the [[Nile River]], primarily worked in the services, agriculture, and industrial sectors, with about one-third directly involved in farming.<ref>{{Cite web |title=Egypt - Agriculture |url=https://www.globalsecurity.org/military/world/egypt/agriculture.htm |access-date=2023-01-21 |website=www.globalsecurity.org}}</ref> The unemployment rate increased from 10.3% in FY2004 to 11.2% in 2005, exacerbated by the privatization efforts that led to job losses in public enterprises. Private sector employment grew at a faster pace than the public sector.<ref>{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/egypt/|title=The World Factbook—Central Intelligence Agency|website=www.cia.gov|language=en|access-date=1 May 2018}}</ref>

In response to rising food prices, the Egyptian government, led by President [[Mubarak]], implemented a pay rise of up to 30% for government and public sector workers in 2008. This was part of an effort to strengthen food security for low-income citizens and to balance wages with prices. The decision to double the originally proposed 15%-20% pay rise came as widespread discontent over inflation could lead to social unrest.<ref>{{Cite news|last=Wright|first=Jonathan|date=30 April 2008|title=30% pay hike for Egyptians as rising prices bite|url=https://www.arabianbusiness.com/politics-economics/30-pay-hike-for-egyptians-as-rising-prices-bite-119958|access-date=22 February 2022|website=Arabian Business}}</ref>

The consumer price index (CPI) inflation rate reached 15.8% in March 2008, with food price inflation much higher at 23.7%. These high inflation figures particularly impacted Egypt's poor and low-income citizens, who spent a large portion of their income on food. By April 2008, food inflation reached 22%, making it clear that inflation as measured by the headline CPI did not capture the struggles of the majority of the population, who were enrolled in food ration programs.<ref>{{Cite web|title=Mubarak proposes 30% public sector pay rise|url=https://gulfnews.com/world/mena/mubarak-proposes-30-public-sector-pay-rise-1.102973|access-date=2022-02-22|website=gulfnews.com|date=30 April 2008 |language=en}}</ref>

Amid these economic pressures, in April 2009, Egypt was concerned about the return of 500,000 Egyptian laborers from Gulf states, which would have further complicated its economic recovery efforts.<ref>{{cite web|url=http://www.infoprod.co.il/article/2/248.html|title=IPR – Egypt fears return of 500,000 workers from Gulf|access-date=4 March 2015}}</ref>

===Post-revolution=== 

Following the [[Egyptian Revolution of 2011|2011 revolution]], Egypt's economy plunged into a severe downturn, facing significant challenges in restoring growth and investor confidence. Foreign exchange reserves fell from US$36 billion in December 2010 to just US$16.3 billion by January 2012. Concerns over social unrest and financial instability led to repeated downgrades by credit rating agencies.<ref>{{cite news |url= http://english.nuqudy.com/General_Overview/North_Africa/SP_Downgrades_Egypt-883 |archive-url= https://archive.today/20120709042815/http://english.nuqudy.com/General_Overview/North_Africa/SP_Downgrades_Egypt-883 |url-status= usurped |archive-date= 9 July 2012 |title= S&P Downgrades Egypt's Credit Rating |access-date= 13 February 2012}}</ref> In 2016, Egypt floated its currency and initiated a reform program with a US$12 billion [[IMF]] loan to restore macroeconomic stability.<ref>{{cite news |title=Egypt: Time to Entrench Growth and Make It More Inclusive |url=https://www.imf.org/en/News/Articles/2018/01/22/na012318-egypt-time-to-entrench-growth-and-make-it-more-inclusive |access-date=30 June 2018 |agency=International Monetary Fund}}</ref>

Inflation had eased by May 2019, indicating signs of economic stabilization.<ref>{{cite web|url=https://www.thenational.ae/business/economy/egypt-inflation-eases-as-economy-strengthens-1.859536|title=Egypt inflation eases as economy strengthens|date=9 May 2019|access-date=9 May 2019|publisher=The National}}</ref>Despite efforts, Egypt’s economy was hit by the global [[COVID-19]] crisis, with real growth declining from 5.6% in FY2018/19 to 3.6% in FY2019/20, reflecting a 1.7% contraction during the April–June period of 2020.<ref>{{Cite web|title=Overview|url=https://www.worldbank.org/en/country/egypt/overview|access-date=2021-10-22|website=World Bank|language=en}}</ref>

In 2024, Egypt made fiscal adjustments, agreeing with the IMF to raise the tax-to-revenue ratio and accelerate the privatization of state-owned companies to strengthen public finances.<ref>{{Cite web |title=IMF, Egypt reach deal to unlock $1.2bn to shore up strained public finances |url=https://www.aljazeera.com/economy/2024/12/25/imf-egypt-reach-deal-to-unlock-one-to-two-billion-dollars |access-date=2025-01-02 |website=Al Jazeera |language=en}}</ref>

Both the IMF and the World Bank predicted 3.8% growth in the Egyptian economy in the fiscal year 2024/2025.<ref>{{Cite web |last=Egypt |first=Daily News |date=2025-04-26 |title=Egypt welcomes WB, IMF growth forecasts, points to reforms |url=https://www.dailynewsegypt.com/2025/04/26/egypt-welcomes-wb-imf-growth-forecasts-points-to-reforms/ |access-date=2025-04-28 |website=Dailynewsegypt |language=en-US}}</ref>