Egypt’s economy is recovering after policymakers launched ambitious and politically difficult reforms to remedy years of economic mismanagement. In November 2016, the currency was floated and the FX market was liberalized, eliminating the overvaluation and FX shortages; a three-year fiscal consolidation program was launched to reduce persistently high budget deficits; monetary policy was tightened to contain inflation pressures; and reforms were launched to address inefficient energy subsidies, strengthen social safety nets and improve the business climate. This has helped restore confidence in the economy and attract investment. IMF forecasts expect growth will reach 6% over the coming years.
GDP per capita rose 4% p.a. between 2010 and 2016. Though stronger economic growth would push per capita incomes toward US$5,000 over the next five years.