Editing Economy of Egypt (section)

===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" />