Structural Changes in the Egyptian Economy, 1937–1965

The economic performance of Egypt during the nineteenth century and the early decades of the twentieth century has consistently been referred to as a typical illustration of ‘lop-sided’ development. ¹ The economic activity of the country was centred on cotton: production, ginning and processing, financing of the crop, irrigation and public works, internal trade and exports. Cotton was the major source of rural and urban wealth as well as the cause of recurrent crisis. This almost exclusive reliance on a single export good implied a great deal of vulnerability to international forces over which Egypt could exercise little or no control. Table 1 Growth Rates of GDP 1913–1965

Subperiods	Years
1	1913–21	Almost zero on average, perhaps because of a decline during the war followed by a rise.
2	1922–28	2½% on average per annum.
3	1929–35	Decline at a rate of 1·5% on average per annum.
4	1936–39	Recovery at a rate of 3–4% per annum.
5	1940–45	Stagnation.
6	1946–51	High rates of growth, 7–8% per annum.
7	1952–54	Sharp decline.
8	1955–56	Slow recovery.
9	1957–60	Accelerated rate of growth (2·7%, 5·5%, 6·1% and 6–9% for the respective years).
10	1961–65	High rates of growth, 6% on average per annum.

Sources: B. Hansen and D. Mead, ‘The National Income of the U.A.R. (Egypt) 1939–1962’, Institute of National Planning, Memo No. 355. National Planning Committee, Memo No. 121. M. Anis, ‘A Study of the National Income of Egypt’, L’Egypte Contemporaine, Nos. 261 & 262 (1950). B. Hansen, ‘Planning and Economic Growth in the U.A.R. 1960–65’, in P. J. Vatikiotis (ed.), Egypt since the Revolution, London 1968.