rizontal bands of red (top),
white, and black with the national emblem (a shield superimposed on
a golden eagle facing the hoist side above a scroll bearing the name
of the country in Arabic) centered in the white band; similar to the
flag of Yemen, which has a plain white band; also similar to the
flag of Syria that has two green stars and to the flag of Iraq,
which has three green stars (plus an Arabic inscription) in a
horizontal line centered in the white band

Economy

Economy--overview: At the end of the 1980s, Egypt faced problems
of low productivity and poor economic management, compounded by the
adverse social effects of excessive population growth, high
inflation, and massive urban overcrowding. In the face of these
pressures, in 1991 Egypt undertook wide-ranging macroeconomic
stabilization and structural reform measures. This reform effort has
been supported by three IMF arrangements, the last of which expired
in September 1998. Egypt's reform efforts--and its participation in
the Gulf war coalition--also led to massive debt relief under the
Paris Club arrangements. Substantial progress has been made in
improving macroeconomic performance. Cairo tamed inflation, slashed
budget deficits, and built up foreign reserves to an all-time high.
Although the pace of structural reforms--such as privatization and
new business legislation--has been slower than envisioned under the
IMF program, Egypt's steps toward a more market-oriented economy
have prompted increased foreign investment. The November 1997
massacre of foreign tourists in Luxor affected tourism enough to
slow the GDP growth rate for 1998 compared to earlier projections.
Tourism's slow recovery, coupled with low world oil prices, caused a
downturn in foreign exchange earnings in 1998, but external payments
are not in crisis.

GDP: purchasing power parity--$188 billion (1998 est.)

GDP--real growth rate: 5% (1998 est.)

GDP--per capita: purchasing power parity?$2,850 (1998 est.)

GDP--composition by sector:
agriculture: 16%
industry: 31%
services: 53% (1997)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: 3.9%
highest 10%: 26.7% (1991)

Inflation rate (consumer prices): 3.6% (1998)

Labor force: 17.4 million (1998 est.)

Labor force--by occupation: agriculture 40%, services, including
government 38%, industry 22% (