The poverty rate has considerably increased, as it has reached an average of 25.5 per cent for the year 2010/2011 compared to 21.6 per cent in 2008/2009, the state-run statistics agency CAPMAS reported.
Poverty remains predominant in rural areas compared to urban areas, with 69 per cent of its total population below the poverty line. The governorate of Assiut (Upper Egypt) having the highest poverty rate in all of Egypt.
The average household income has reached LE25,000 ($4,090) for the year 2010/2011 calculated according to income, expenditure, and consumption. The average expenditures of Egyptian households stand at some LE22,000 ($3600).
The poorest 20 per cent have spent some LE14,000 ($2,290) per household annually while the expenditures of the richest 20 per cent have reached LE 31500 ($5,154). This category is the only one with expenditures over passing the average expenditures, while 80 per cent of the population is below the average.
On the top of the social pyramid is 4.3 per cent of the families spending over LE5,000 ($818) per year.
The highest group expenses reach around 40 per cent of total expenditures versus four times the poorest category spending.
The recent report also highlighted income discrepancies between urban areas that reached an average household income of LE30,205 ($4942) compared to LE21,370 ($3496) in rural areas.
Employment income is reported as the main source of family income, as it constitutes almost 70.4 per cent of total household income, mainly derived from the public sector. This is followed by income from cash commodity transfers that represent almost 15.9 per cent of total household income.
The report distinguished 6 different levels of income; the lowest category includes households that earn less than LE10,000 ($1,636) per year which includes families below the poverty line.
High-income segments were divided into two groups; the first includes households that earn an average yearly income between LE20,000 ($3,272) to LE30,000 ($4,909) and the highest income category LE30,000 – LE50,000 ($8,181) a year.
The official statistical agency reports the average household income has reached LE25,000 for the year 2011.
