Following an average growth rate of 7 per cent from the fiscal year 2005/06 to 2007/08, and of over 5 per cent from 2007/08 to 2009/10, economic growth in Egypt slowed to 1.8 per cent in 2010/11, owing to the negative impact of social upheaval. Political instability and structural deficiencies in the economy (including underdeveloped infrastructure, weak human capital, difficulty in gaining access to financing and an uncompetitive business environment) seriously affected growth from 2011 to 2014. The return of relative political stability and a review of the Constitution in January 2014, along with presidential elections in June 2014, coupled with structural reforms, helped to revitalize the economy of Egypt to restore growth to pre-crisis levels, to reach 4.3 per cent in the fiscal year 2015/16. Egypt could build on its large market size, its business sector and its geographical proximity to the large European market. To do so, Egypt needs to step up its reform efforts and address the major rigidities that negatively affect its goods, labour and financial markets. Other priorities include higher education and training, in particular in terms of quality, in addition to the overall security situation, which remains fragile and imposes significant costs for business.
