Egyptian economy

In 1956-1970, in political and economic terms, the country's leadership was guided by the Soviet Union. Gamal Abdel Nasser , who at that time was the president of Egypt, laid the foundation for a policy of state intervention in the economy, which made it possible to restructure the infrastructure as soon as possible, create a powerful industry and stimulate the development of agriculture. However, after some time, the unproductive and excessive growth of state enterprises showed the entire inefficiency of the centralized economic system. For this reason, Anwar Sadat and Hosni Mubarak in their economic policies abandoned the model of the USSR, taking the US economy as a guideline. Hosni Mubarak, in particular, carried out a series of reforms aimed at stimulating economic growth, which allowed to increase the competitiveness of the Egyptian economy and attract foreign investment. From 2005 to 2008, the country's gross domestic product (GDP) growth remained at about 7%, although in 2009 this figure fell to 4.6%. Due to increased exports and government investment in infrastructure development, in 2010, GDP growth exceeded 5%. ^[1] The main items of income of the state budget of Egypt ^[2] :

• tourism
• duty on ships sailing the Suez Canal
• transfers of wealthy Egyptians living abroad
• export of oil, cotton, vegetables, fruits

GDP

Agriculture since the 1952 revolution ^{[ clarify ] has} ceased to be the country's main source of income. Almost all agricultural land is in the Nile Delta , and peasant plots are small. In the Nile Valley, all of Egypt's main crops are grown. Thanks to irrigation (3.3 million hectares of land is irrigated) and the use of fertilizers (1.3 million tons, or about 4 centners per 1 hectare of land), grain yields are kept at a high level - over 70 centners / ha. The share of agricultural products in Egypt's exports is 15.4%. Wheat (6.2 million tons), corn (6.8 million tons), rice (5.6 million tons) are grown from food crops, cotton (0.8 million tons) from industrial crops , sugar beets (3.2 million tons), and sugar reed (15.7 million tons).

About 65% of cotton crops (data for the 1970s) fall in Lower Egypt , 25% in Middle Egypt and 10% in Upper Egypt . In Upper Egypt, the varieties Dandara and Asmouni are sown, in Middle - Giza 66 and Giza 72, in Lower Egypt - Giza 45, Giza 67, Giza 68, Giza 69, Giza 70 and Menoufi. All these varieties were bred after World War II, with the exception of Asmouni, cultivated over 110 years and occupying about 7% of the cultivated area ^{[3] [4]} .

Since the late 1980s, coastal fisheries unexpectedly showed high growth, and by 2009-2010 the catch was three times higher than the level that existed before the construction of the Aswan hydroelectric station. ^[5] Scientists have linked the growth of fisheries in the Nile Delta with a significant increase in the use of fertilizers in Egyptian agriculture. At the same time, this effect began to noticeably decrease from the mid-2010s, so according to the data of the World Food Organization ^{[6], the} total volume of fish caught in 2007 amounted to 372491 tons, in 2010 - 385209 tons, in 2013 - 356857 tons ., and in 2016 only 335613 tons.

In 2005, the New Valley project began to be implemented , transferring part of the waters of the Nasser reservoir to the desert territories of the west of the country, which should increase the territories suitable for agriculture.

The threat of hunger

According to the UN World Food Program, 31% of Egyptian children aged six months to five years are undernourished, which is one of the highest rates in the world. In 2009, malnutrition caused Egypt's GDP decline of about 2%. According to Future Directions International (FDI), an Australian research center, one in five Egyptians faces the threat of food shortages, and "an increasing number of people cannot afford enough nutritious food." The poor in Egypt rely on low-nutritious, high-calorie foods (such as the infamous Kushari, a starch-rich dish) that cause both nutritional deficiencies and obesity . In addition, according to reports by the Egyptian government agency CAPMAS, 5.2% of the population is actually starving.

Many factors contribute to the hunger crisis in Egypt. In order from the deepest to the most superficial, they include:

• The problematic policy of the government . Cairo has consistently preferred urban areas to the detriment of rural ones, resulting in reduced agricultural research, lack of financial support, private sector monopoly, ridiculous subsidies, smuggling , corruption and the black market . Farmers suffer from a lack of seeds, fertilizers and pesticides - expensive but low quality. The most detrimental effect was the decrease in the number of cultivated land due to the participation of the state in unlimited and illegal housing development.
• Reliance on food imports . Egypt has historically provided for itself, but now - according to FDI reports - it imports 60% of its food. The country remains largely self-sufficient with respect to fruits and vegetables, but to a large extent depends on overseas purchases of grain, sugar, meat and edible oils. Egypt imports 2/3 of wheat (10 million tons of the consumed 15 million, which makes it the world's largest importer of wheat), 70% of beans and 99% of lentils . Thanks to the generosity of friendly oil exporters, around $ 20 billion in 2013 was critical to financing food imports.
• Poverty Dependence on an unstable international market increases risk as Egypt's impoverishment continues. Real GDP growth, which previously reached an average of 6.2%, fell to 2.1% in 2012-13. The unemployment rate is about 19%. The cotton crop , once the pride of Egypt, declined by more than 11% in 2012-13 alone. 28% of young people live in poverty, and 24% live only slightly above the poverty line .
• Lack of water . The Nile does not cover the Egyptian needs of 20 billion cubic meters of water per year, taking into account factors such as population growth and irrigation inefficiency, reducing Egyptian food production. After the construction of new dams on the Blue Nile in Ethiopia, an even sharper deficit will follow for a decade.
• Recent crises . The FDI notes “the bird flu epidemic in 2006, the food, fuel and financial crises in 2007-2009, the global food market price spike in 2010, and the economic downturn caused by political instability since the 2011 revolution ” ^[7] .

Mining industry

Industry since the 60s has played an increasing role in the economy and exports of Egypt.

Egypt's main export product is oil . The main oil deposits are located in the Sinai Peninsula and the Gulf of Suez (Badri, Belaim, Ramadan, Ras Sudar and others). During the occupation of this peninsula by Israel, Egypt experienced a severe economic crisis. In addition to oil reserves, the country has reserves of natural gas in the Nile Delta basin and exports it in the amount of 1.1 billion m³ (2003) via the Arab gas pipeline to Israel, Jordan and Syria. In 2005, Egypt began exporting liquefied natural gas (LNG), which allowed it to take sixth place in the world in gas exports. Two LNG plants operate in the country, the largest producer is the company British Gas ^[8] .

In 2009, the first in the history of modern Egypt began development of a gold deposit .

Manufacturing

The manufacturing industry is also developing. Televisions, refrigerators are manufactured, car assembly enterprises are operating, including a joint venture with AvtoVAZ . Metallurgy (represented by the Helwan Iron and Steel Works) does not play a significant role, the bulk of the demand for steel is covered by imports.

The main part of the generated electricity is at thermal power plants operating on oil . Hydropower resources are important. Of great importance for the economy was the construction of the Aswan hydroelectric station with technical assistance from the USSR .

Of particular importance to the economy is the transport system of the Suez Canal , which includes not only the canal and infrastructure, but also several expanding its pipeline capabilities.

Roads : Total 92 370 km, including:

• Paved - 74,820 km
• No hard surface - 17 550 km

Railways : Total 5,063 km

Airports : Total 88. The largest in terms of passenger flow are the international airports of Cairo, Sharm el-Sheikh , Hurghada .

• With paved runways - 72.
• With runways without hard surface - 16.

Mobile carriers

In Egypt, mobile communications are represented by three major operators:

1. Etisalat - etisalat.com.eg
2. Orange - orange.com
3. Vodafone - vodafone.com.eg

Internet

Egypt's global Internet service providers: ^[9]

1. Etisalat Misr - AS36992
2. Internet Egypt - AS5536
3. Link Egypt (Link.net) - AS24863
4. Noor Group (Noor.net) - AS20928
5. Telecom Egypt (TE) - AS8452
6. Raya Telecom - AS24835

DOS resorts: Sharm el-Sheikh , Hurghada , Nuweiba .

• Ministry of Tourism of Egypt
• Halal tourism

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