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Egypt is a large and diversified economy. It has the largest population in the MENA region (more than 100 million Egyptians). The implementation of economic reforms since 2016 (with International Monetary Fund support) has restored an acceptable macroeconomic situation. However some vulnerabilities and weaknesses remain. External liquidity is subject to volatile portfolio flows and variable tourism activity. The government debt is high (but mostly domestic) and the budget continues to be heavily constrained by the need to service debt. The recourse to IMF financial support to weather the economic consequences of the pandemic highlights the ongoing need for international support.

Economic activity is sustainable thanks to household consumption (driven by the demography) and public investments in infrastructure. Nevertheless, job creation is far from being sufficient to absorb new entrants in the job market. As a consequence, the informal sector is large. The role of the public sector in the economy is very significant. Foreign direct investment (FDI) flows have been sustained for several years and have been concentrated in the hydrocarbon sector.