Macroeconomic imbalances are large
Renewable energy has room to expand
Competition pressures are low
Social contribution rates are high
Economic growth has been volatile
The population is growing rapidly
Educational attainment has increased
Living standards have improved
Trade openness is low
The FDI stock has room to increase
Employment has fallen behind and the poverty rate has trended up
Further efforts to reduce emissions are needed
Public investment has increased
The development of high value-added industries remains limited
The trade deficit has been shrinking
The reliance on exports of raw materials is high
Remittances support the current account balance
Capital inflows have been volatile
Public debt is high
Inflation has surged to record highs
Financing conditions for businesses have deteriorated
Both foreign exchange reserves and foreign assets of banks are low
The banking system seems sound against the background of low risk taking
Banks’ exposure to sovereign debt is high in Egypt
Egyptian sovereign bonds yields have risen
The policy interest rate has been raised substantially
The official exchange rate shifted substantially in 2022
Interest payments weigh on the budget balance
Debt sustainability is particularly sensitive to interest rates
Non-tax revenue has declined over the past decade
The spending mix has significantly changed
The quality of roads has improved in recent years
There is untapped potential to scale up renewable energy
Energy-related sectors, industry, and transportation are the largest emitters
There is room for improvement in the renewable energy sector
Low output per worker is related to low investment
Spending on research and development is low
Business dynamism is low in Egypt
Egypt’s business environment is restrictive
Barriers to entrepreneurship are high
Business licensing is a major constraint for domestic businesses and exporters
Obtaining permits is a lengthy and complex process
Despite reforms, regulatory quality has declined
Perceptions of corruption are high
Egypt’s competition enforcement could improve further with more resources
Import tariffs are high
There is scope to improve Egypt’s FDI regime
High government involvement in the economy distorts competition
The public sector produces a large share of output
Access to formal financial services is low
Egyptian firms have little recourse to bank lending
Lending to the private sector is low by international standards
Domestic credit goes overwhelmingly to the government
Resolving insolvency is slow and recovery rates are low
The stock market is shallow
Mobile broadband penetration is low
Legal framework adaptability to digital business models
Employment rates are low and unemployment is high
The working age population will increase and become more educated
Informal jobs are prevalent, particularly among youth
The share of informal employees is high
Informality prevails through many channels
Working hours are long in Egypt
Policies to reduce informality and improve job quality
Labour taxation for the employer remains high
Employment protection legislation is strict
Women are often out of the labour force due to family responsibilities
Formal education in Egypt
Trends in enrolment in primary, secondary and tertiary education in Egypt
Student performance is low
Education spending is low
Employment rates of higher education graduates in Egypt