- 84.2 million
- $553.6 billion 2.1% growth 3.2% 5-year compound annual growth $6,579 per capita
- $5.6 billion
Egypt’s economic freedom score is 55.2, making its economy the 124th freest in the 2015 Index. Its overall score is 2.3 points higher than last year due to improvements in six of the 10 economic freedoms, including labor freedom, monetary freedom, and investment freedom, that outweigh declines in trade freedom and the control of government spending. Egypt is ranked 12th out of 15 countries in the Middle East/North Africa region, and its overall score is below the world average.
Over the past five years, Egypt’s economic freedom score has declined by nearly 4.0 points, pushed down by double-digit losses in property rights, investment freedom, and financial freedom. However, this decline has come to a halt in the 2015 Index.
action to restore and improve economic freedom is essential to counter economic stagnation and poverty. Long-established weaknesses in the institutional framework that include price controls and government subsidies of gasoline have greatly burdened the budget and forced the government to seek a bailout from both the IMF and other Arab states. The rule of law is ineffective and arbitrary, and judicial procedures are long and costly.
The army ousted President Hosni Mubarak in February 2011, and the Supreme Council of the Armed Forces assumed power pending election of a new civilian government. The parliament was dissolved in June 2012 after one-third of its members were found to have won their seats illegitimately. Mohamed Morsi of the Muslim Brotherhood’s Freedom and Justice Party was elected president in June 2012 and granted himself sweeping new powers in November. His increasingly authoritarian rule triggered huge demonstrations and a July 2013 army coup. Field Marshal Abdel Fattah el-Sisi was elected president in May 2014. Three years of political instability have hurt tourism and foreign investment, both of which are important sources of foreign exchange. There have been limited market reforms, but food, energy, and other key commodities remain heavily subsidized.