The Global Position of the Egyptian Economy

Updated 11/18/2023 9:00:00 AM

The Egyptian economy has been facing a series of global challenges that have hindered its growth. These challenges started in late 2019 with the spread of the COVID-19 pandemic. While recovering from the repercussions of the pandemic, Egypt’s economy was hit by the Russian-Ukrainian war, which put further pressure on the international prices of essential commodities.

In this Factsheet, we will shed light on the recent indicators of Egypt’s macroeconomic performance, such as the gross domestic product (GDP) growth rate, unemployment rate, inflation rate, and other relevant indicators. Then, we will identify where the Egyptian economy stands among other economies, especially those in Africa.

Egypt’s GDP increased from $424.67 billion in 2021 to $476.75 billion in 2022, accounting for 5% of the world’s GDP. In 2022, Egypt’s economy ranked 31st among the world and the second largest economy in Africa. The International Monetary Fund (IMF) projections showed that Egypt’s economy will shrink to hit $398.4 billion by the end of 2023.
The GDP growth rate in Egypt remarkably increased from 3.3% in 2021 to 6.6% in the following year. This made Egypt the 37th fastest-growing economy in the world and the eighth in Africa. Due to the current economic status represented in increasing prices, the growth rate is expected to fall to 4.15% by the end of 2023.
The GDP per capita, often used as a measure of the standard of living in a country, increased in Egypt by 10.5% year-on-year (YoY) to $4,295 in 2022. Considering the current inflationary pressure, the GDP per capita is expected to go down by 12.2% and reach $3,770 in 2023. In 2022, Egypt’s GDP per capita ranked 88th in the world and fourth in Africa.
The average inflation rate in 2022 increased to 13.9%, compared to 5.2% in 2021. In 2022, Egypt’s inflation rate was the 32nd highest in the world and the 10th highest in Africa. Over the first 10 months of 2023, the inflation rate averaged 33.7%, while the IMF expects it to reach 7% by the end of the year.
In 2021, the unemployment rate was 7.4%, and it fell in 2022 to the lowest record ever of 7%. This record brought Egypt to the 73rd place globally and the 24th on the African level. At the end of the second quarter (Q2) of 2023, the number of unemployed reached 2.1 million; hence, the unemployment rate stood at 7%. The rate is projected to remain unchanged at 7% until the end of 2023.
Egypt has a single minimum wage rate that reached $244 per month in 2022. This rate placed Egypt in the 76th position among the world’s average monthly wages and the 11th among the African countries.
In 2022, Egypt’s national savings reached $60.8 billion, representing 13% of the GDP. On the other hand, total investments accounted for 17% of the GDP. In terms of savings, Egypt ranked 36th globally and second among African countries. While, in terms of investments, Egypt ranked 144th globally and 34th in Africa.