Egypt has what type of economy

Although Egypt was granted independence in , Britain continued to control the country in an alliance with the Egyptian monarchy until , when a group of young army officers overthrew King Farouk. In , Gamal Abdel Nasser ousted the first president Muhammad Maguib and became a popular and influential leader. Since gaining independence from Britain, Egypt has struggled to rid itself of the feudal economic system left behind by the British and to create an independent economy capable of standing on its own.

By the end of the twentieth century, Egypt had not yet achieved a vibrant economy and remained heavily dependent on foreign aid and imported goods. Today, Egypt is primarily a free-market economy with some state control. Despite occasional outbreaks of political violence, it has a reasonably stable multiparty system and is strongly supported by the United States and the European Union.

The economy's main exports are crude oil and petroleum products, cotton, textiles, metal products, and chemicals. Agriculture today accounts for 17 percent of GDP, industry for another 32 percent, while the services sector provides 51 percent. Egypt is the world's largest exporter of cotton and its textile industry is large.

Other industries include the production of cement, iron and steel, chemicals, fertilizers, rubber products, refined sugar, tobacco, canned foods, cottonseed oil, small metal products, shoes, and furniture.

Although the agriculture sector continues to employ almost one-third of the workforce , most of the arable land is used to cultivate cotton, and Egypt must import about half of its food requirements. Unemployment in was reported at 20 percent, and the income disparity between the highest and lowest strata of society remains high.

By contrast, unemployment in the United States in was just 4. Since the s, foreign aid has played a major role in Egypt's development processes. As a socialist country, Egypt received much financial and military assistance from the former Soviet Union between and , but this ended in the s after Egypt signed a peace treaty with Israel.

Arab support, mainly from the Gulf states, was frozen in because of Arab opposition to Egypt's peace treaty with Israel. Egypt relies heavily on imported wheat, corn and soybeans, much of which is sourced from the U. However, thanks to quick mitigating actions taken by the Government of Egypt and ongoing International Monetary Fund IMF -sanctioned reforms, the economy grew by 3.

Though tourism almost came to a standstill at the beginning of the outbreak, it is now coming back online, with more international flights resuming and tourists from many countries able to visit by producing a negative Covid PCR test upon arrival. Egypt and the United States signed a Bilateral Investment Treaty in to promote and facilitate investment between our countries.

The agreement establishes a framework for expanding trade while resolving outstanding disputes between both countries. It is a natural step towards negotiating a free trade agreement. American firms are active in most sectors of the Egyptian economy, including oil and gas exploration and production, healthcare, transportation, financial services, manufacturing, construction, telecommunications and information technology, and the restaurant and hospitality industry.

The government has already taken some steps towards economic reform, including cutting government subsidies, increasing fuel prices and electricity rates.

Additionally, the government has approved several infrastructure development projects in order to create jobs, which increases salaries and spending.

The Egyptian government has also appointed a new economic team, who is in charge of the new economic plan to further attack these challenges. An offshore platform in the Darfeel Gas Field. Amber Pariona April 25 in Economics. Industrial Revolution. What Is A Developing Country?