Egypt profile

Demography and Health

Egypt’s population stands at about 116.5 million in 2024 and remains one of the most populous countries in the Middle East and North Africa. The large and relatively young population sustains a substantial labor force potential, even as demographic pressures shape public policy. The crude birth rate of 21.0 per 1,000 people (2023) suggests continued rapid population growth, while life expectancy at birth is 71.6 years (2023), indicating improvements in health but still placing Egypt behind many upper-income peers on this metric. The crude death rate is 5.46 per 1,000 (2023), reflecting improving health outcomes relative to childhood mortality. Under-5 mortality is 17.5 per 1,000 live births (2023), signaling ongoing challenges in child health that can be mitigated through investments in maternal and neonatal care. The prevalence of undernourishment is 8.5% (2022), underscoring persistent food security concerns for a portion of the population despite overall improvements in caloric availability. Net migration in 2024 shows a positive inflow of about 123,884 people, suggesting that Egypt remains a destination for migrants, which can affect urban planning, labor markets, and public services. Together, these indicators point to a nation with a large, youthful base that offers growth potential, yet requires continued investment in health, nutrition, and social services to translate demographic momentum into sustained development. Internet penetration is high and rising (72.7% of the population using the Internet in 2023), reflecting a growing digital society that can support health information systems and e-services, though disparities likely persist between urban and rural areas.

Economy

Egypt’s economy exhibits a mix of vulnerability and resilience. The GDP per capita at current prices is about 3,338 US dollars in 2024, indicating lower average income levels when measured in market terms, even as the GDP per capita on a Purchasing Power Parity basis is substantially higher at 19,094 international US$ (2024). This divergence highlights the effect of price levels and cost of living on welfare assessments and the importance of PPP-based metrics for comparing living standards. Inflation is very high, at 28.3% in 2024, pointing to macroeconomic stress and eroding real incomes, which can impact consumer demand and social stability. Unemployment stands at 6.75% in 2023, suggesting that labor markets are capable of absorbing a portion of the workforce, though the quality and productivity of jobs may vary widely across sectors. The economy exhibits a modest openness to trade, with exports of goods and services representing 16.4% of GDP (2024) and imports at 23.2% of GDP (2024), implying a goods trade deficit that can affect current account dynamics and exchange rate pressures. Domestic general health expenditure and current health expenditure together reflect an effort to finance care, but health spending remains a relatively modest share of GDP, signaling room for policy choices on social protection and public services. Egypt’s commitment to research and development is notable, with R&D expenditure at 1.03% of GDP (2023), one of the higher shares in its peer group and ranking third globally, suggesting strong emphasis on knowledge creation even if the translation into high-tech exports requires capacity building. Public and private investment flows show foreign direct investment net inflows at 2.49% of GDP (2023), highlighting gradual integration with global capital markets, though financing and risk management will matter for sustaining investment cycles amid high inflation and external vulnerabilities.

Trade and Investment

Trade plays a central role in Egypt’s economy, with exports of goods and services comprising 16.4% of GDP in 2024 and imports accounting for 23.2% of GDP, indicating a trade structure that leans toward import-driven domestic markets and potential exposure to global price swings. The relatively modest share of exports suggests that diversification beyond traditional sectors could enhance external resilience, especially in high-value manufacturing and services. High-technology exports are modest in value at about 697.6 million US dollars in 2023, indicating that the country has not yet scaled up high-technology production to the level of more advanced economies, though this aligns with a strong R&D push given the 1.03% of GDP investment in research and development. Patent activity shows 881 resident patent applications in 2021, reflecting an emerging, but still developing, innovation ecosystem. Net foreign direct investment inflows at 2.49% of GDP in 2023 signal openness to capital formation, but the ratio also suggests limited scale relative to regional peers and a need for stable policy environments to attract larger, long-term investments. The current account balance in 2023 stands at -3.17% of GDP, signaling a modest external deficit that could be managed through a combination of export diversification, import substitution where feasible, and prudent macro policy, especially in the face of volatile global commodity prices and inflation. Net migration flows, with 2024 arrivals surpassing departures by about 123,884 people, can support demographic dividends but also place demand on cities, housing, and public services.

Governance and Institutions

Egypt’s governance indicators paint a picture of considerable challenges in the policy environment. Political stability and absence of violence/terrorism rank a low 164 (on a likely 0-100 or 0-1 scale, depending on the dataset), with a value of -0.867 in 2023, signaling vulnerability to internal and external shocks and potential risks for investors and civil society. Regulatory quality sits at -0.665, suggesting difficulties in shaping and enforcing efficient regulatory frameworks, which can hamper business confidence and the ease of doing business. The rule of law is weak at -0.184, implying gaps in judicial independence, contract enforcement, and due process that can curtail long-term investment and economic planning. Control of corruption, at -0.748, and government effectiveness at -0.24, point to governance limitations that can constrain public service delivery, policy consistency, and administrative capacity. Taken together, these indicators suggest a governance landscape that benefits from reforms aimed at strengthening institutions, enhancing transparency, and improving the predictability of policies—areas critical to sustaining investment, improving public services, and fostering inclusive growth.

Infrastructure and Technology

Egypt demonstrates notable strengths and emerging gaps in infrastructure and technology. The Logistics Performance Index (LPI) quality of trade and transport-related infrastructure stands at 3.0 on a 1-5 scale in 2022, with a high rank of 16, indicating relatively competent logistics performance compared with many peers but still room for improvement to reduce costs and time in cross-border trade. High-technology exports reach 697.6 million US dollars in 2023, a modest absolute figure that underscores the potential to scale technologically advanced industries through targeted policy support and private sector investment. Resident patent applications reach 881 in 2021 (rank 34), signaling a growing inventive activity, while R&D expenditure accounts for 1.03% of GDP in 2023 (rank 3), underscoring a strong emphasis on knowledge creation relative to peers. The internet has penetrated broadly, with 72.7% of the population online in 2023, providing a solid digital platform for innovation, entrepreneurship, and e-government services. However, the gap between high R&D intensity and commercialized high-tech outputs suggests that further efforts in commercialization, enterprise development, and IP ecosystems are needed to translate research into productive industries. The current account and monetary conditions will also influence the ability to fund infrastructure upgrades, and continued focus on energy, transport, and urban infrastructure will be essential to sustain growth.

Environment and Sustainability

Egypt faces substantial environmental challenges and opportunities, particularly around water resources and climate resilience. The level of water stress, defined as freshwater withdrawal as a proportion of available resources, is exceptionally high (reported as 141.0 with a rank of 8), signaling severe pressure on water supply and the agriculture sector, which is a cornerstone of livelihoods and food security. With population growth and a rising urban footprint, efficient water management, wastewater treatment, and irrigation modernization become crucial to sustain both domestic use and agriculture. Total greenhouse gas emissions per capita are around 2.93 t CO2e, which, while moderate on a global scale, contribute to climate pressures that Egypt must address through energy transition, urban mobility improvements, and industrial efficiency. Renewable energy accounts for about 6.1% of total final energy consumption in 2021, indicating substantial scope for expansion given Egypt’s solar and wind potential. Undernourishment persists in 2022 at 8.5% of the population, highlighting the need for nutrition-sensitive policies, improved agricultural productivity, and social safety nets to protect vulnerable groups. Life expectancy of 71.6 years and under-5 mortality rate of 17.5 per 1,000 live births reflect ongoing public health needs, even as investment in health and nutrition programs expands. Overall, Egypt’s environment and sustainability profile requires integrated policy approaches that balance rapid development with water security, climate resilience, and inclusive access to energy and food.