Egypt Demographic Characteristics Egypt, Located in Africa,

Egypt

DEMOGRAPHIC CHARACTERISTICS

Egypt, located in Africa, is positioned on the Mediterranean Sea between the Gaza Strip and Libya.

It has a population of a little over 71 million people.

They have a birth rate of 27 per 1,000 people, 2% increase per year.

At this rate their population should more than double by the year 2050 to over 115 million people.

Egypt has about 157 people per square mile, with 40% of the population urban.

Egypt is a young country, with 34% of the population aged 14 or younger (CIA, 2002).

Egypt's population is growing more rapidly than any other country in the Arab world (CIA, 2002).

This is a potentially serious problem for Egypt in the future, because the country has limited farmable land, only 3%, to support its present population (CIA, 2002).

Egypt uses water from the Nile to irrigate some land.

Most people live in the Nile Valley or the delta.

The rest of the country, about 96%, has few inhabitants (Columbia, 2002).

One result of the pressure from Egypt's growing population is that some of the country's precious arable land has been urbanized.

The Nile River is the country's only dependable water source, and the country's water demands are already straining available water supply (CIA, 2002).

The population growth has also brought urban management problems such as sewage treatment, which requires large amounts of water.

INCOME/MONEY

The Gross National Income, per capita, is $3,580.

By Egyptian standards, 22% live below the poverty line (CIA, 2002).

The inflation rate in 2001 was 2.3% (CIA, 2002).

Egypt received advice from the International Money Fund over the last decade regarding economic management.

Following this advice, Egypt was able to curb inflation, reduce budget deficits, and attract foreign businesses for investment.

However, government spending has increased in the last three years, especially on the country's infrastructure (CIA, 2002).

This seems prudent given their growing population, but it has increased their budget deficit.

In the year 2001, Egypt had expenditures of $26.2 billion, but revenues of only $21.5 billion, thus illustrating their current budget deficit problems (CIA, 2002).

The country's GDP (Gross Domestic Product) grew by 2.5% during 2001 (CIA, 2002), In 1999, the country received over $2 billion in economic aid, mostly from the United States.

Egypt's economy was also negatively affected by the Al-Queda attacks on the United States last year; tourism, a major industry, dropped off significantly after the September 11 attacks (CIA, 2002).

Egypt has made remarkable gains in the past nine years, with income increasing by 88% during that time (Ragab, 2000).

LABOR FORCE

In 2001, the labor force was made up of 20.6 Egyptians.

29% worded in agriculture, 22% worked in industry, and 49% worked in services (CIA, 2002).

From 1997-1999, unemployment averaged about 8.67%.

About 25% of Egypt's workers belong to a union (NRF, 2002).

However, the unions' power for collective bargaining is somewhat limited.

The minimum age to hold a job was raised in 1996 from 12 to 14 (NRF, 2002), with some exceptions.

Children make up 2.7% of the workforce (NRF, 2002).

Economic pressures and inadequate education encourage children to take jobs.

Egypt has a minimum wage that is the equivalent of $20 U.S. dollars per month.

This assumes six eight-hour days per week (NRF, 2002).

However, Egypt's complicated fringe benefits mean that many employees may earn up to three times that much in a month.

The minimum wage is mandatory for both public and private sector jobs (NRF, 2002).

While some women in Egypt work outside their homes, many have difficulty finding jobs, especially when they lack a high school education (Assad, 2002).

In rural areas, part-time work is common for both men and women.

PRODUCTIVITY

The Egyptian government has been working hard on economic reform.

It is working to improve communication technology and the country's infrastructure.

Natural resources include petroleum, natural gas, iron ore, phosphates, manganese, limestone, gypsum, talc, asbestos, lead, and zinc (CIA, 2002).

Egypt's GDP in 2001 came from three primary sources: services, 56%; industry 30%; and agriculture, 14% (CIA, 2002).

Industries include textiles, food processing, tourism, chemicals, hydrocarbons, construction, cement, and metals (CIA, 2002).

The arable land is worked intensively, sometimes producing three crops in a year (Columbia, 2002).

Construction of the Aswan Dam increased the amount of tillable land, but not enough to keep up with long-term projected population growth.

Cotton is the main crop, but Egypt also grows rice, wheat, citrus fruit and dates, and a variety of vegetables.

Herders raise sheep, goats, cattle and some other animals (Columbia, 2002).

Farms tend to be small with much work done by humans and animals rather than machinery.

The country exports crude oil and petroleum products, cotton, textiles, metal products, and chemicals (CIA, 2002).

The country's GDP showed significant growth over the last decade, rising from $76.million in 1997 to $89.7 million in 1999.

Growth rates for those years were 5.3% (1997), 5.7% (1998), and 6.0% (1999) (U.S. Dept. Of State, 2000).

Services is the fastest-growing sector of the country's economy as well as its largest (U.S. Dept. Of State, 2000), including services related to the Suez Canal and banking as well as tourism and trade.

The main industrial areas are Cairo, Alexandria, Port Said and Suez. Industries include refined petroleum and natural gas, chemicals and fertilizers, production of clothing and textiles, cement, and iron and steel (Columbia, 2002).

President Mubarek predicts continued economic growth for Egypt particularly because of plans put in place to encourage foreign investment, including improved technology services for Egypt (Ragab, 2000).

CONSUMER GOODS

Egypt primarily imports machinery and equipment, foodstuffs, chemicals, wood products, and fuels (CIA, 2002). About 1/3 of their import business goes to the European Union, and the United States gets about 18% (CIA, 2002). In 1997 Egypt had about 7.7 million TV's (CIA, 2002) or about one for every ten people

One of the factors affecting the cost of consumer goods in Egypt is its tariff policy. They have reduced tariffs from 50% to 40%, but some items have markedly high tariffs, including imported automobiles and parts for those cars, and poultry imported from the United States (U.S. Dept. Of State, 2000). Egyptian businesses also complain about complex bureaucratic regulations that complicate the process of doing business with other countries (U.S. Dept. Of State, 2000).

EDUCATION AND LITERACY

Primary and intermediate education has been mandatory in Egypt since 1981. Primary school covers six grades and is for children aged six to 12. Intermediate education, also required, is three years of school for those aged 12 to 15. Secondary education is not required, and intended to prepare the student for what he or she will do after graduation - college, technical training, or the world of work (Me-Schools, 2002).