With the installation of the 2004 Egyptian parliament, the Government of Egypt began a new reform movement, following a stalled economic reform program begun in 1991, but moribund since the mid-1990s. In the past year, the cabinet economic team has simplified and reduced tariffs and taxes, improved the transparency of the national budget, revived stalled privatizations of public enterprises and implemented economic legislation designed to foster private sector-driven economic growth and improve Egypt's competitiveness. Despite these achievements, the economy is still hampered by government intervention, substantial subsidies for food, housing, and energy, and bloated public sector payrolls. Moreover, the public sector still controls most heavy industry.

In sectoral terms, agriculture is mainly in private hands, and has been largely deregulated, with the exception of cotton and sugar production. Construction, non-financial services, and domestic marketing are also largely private. The Egyptian economy, however, relies heavily on tourism, oil and gas exports, and Suez Canal revenues, much of which is controlled by the public sector and is also vulnerable to outside factors.

Petroleum and natural gas, iron ore, phosphates, manganese, limestone, gypsum, talc, asbestos, lead, zinc.

Products--cotton, rice, onions, beans, citrus fruits, wheat, corn, barley, sugar.

Types--food processing, textiles, chemicals, petrochemicals, construction, light manufacturing, iron and steel products, aluminum, cement, military equipment.

petroleum, clothing and textiles, cotton, fruits and vegetables, manufactured goods. Major markets--EU, U.S., Middle East, Japan. Imports: machinery and transport equipment, petroleum products, livestock, food and beverages, paper and wood products, chemicals. Major suppliers--EU, U.S., Japan.