Agriculture formed the backbone of the Egyptian economy. The annual flooding of the Nile River deposited nutrient-rich silt, creating fertile soil suitable for farming. Ancient Egyptians cultivated crops such as wheat, barley, flax, vegetables, and fruits. The success of agriculture relied on an efficient irrigation system, which involved the construction and maintenance of canals, dykes, and reservoirs to control the flow of water. 

The Nile River's flooding pattern was predictable, allowing ancient Egyptians to develop advanced irrigation techniques. They constructed networks of canals, ditches, and reservoirs to divert water from the Nile to irrigate farmland. This ensured a steady water supply for crops throughout the year, leading to stable agricultural production. 

The fertile land and efficient irrigation systems enabled ancient Egypt to achieve surplus agricultural production. The surplus allowed the society to support a large population and engage in trade and specialization. It also provided resources for the ruling class, priests, and the construction of monumental structures. 

Ancient Egypt had an extensive trading network, both within its borders and with neighboring regions. The Nile River and the Red Sea played crucial roles in facilitating trade routes. Egyptians traded with Nubia (present-day Sudan), the Levant, Mesopotamia, and other parts of Africa. They exchanged goods such as grain, papyrus, linen, gold, precious stones, spices, timber, and luxury items. The trade routes also facilitated the exchange of ideas, culture, and technology. 

The ancient Egyptians were skilled craftsmen and artisans. They produced a wide range of goods, including pottery, jewelry, textiles, metalwork, furniture, and woodworking. Craftsmen often worked in specialized workshops and catered to both local and export markets. Some goods, such as papyrus and linen, were highly sought after and became major export commodities. 

Egypt was rich in mineral resources, and mining played a significant role in its economy. Gold, copper, silver, and gemstones were mined from the Eastern Desert and the Sinai Peninsula. Quarrying of limestone and granite provided construction materials for monumental structures such as temples and tombs. 

The state played an important role in the economy of ancient Egypt. The pharaoh and the central administration controlled the land and its resources. Taxes, in the form of agricultural produce and labor, were collected from the population to support the government and its projects, including the construction of temples, pyramids, and other public works. 

The economy of ancient Egypt was hierarchical, with a ruling elite consisting of the pharaoh, nobles, and priests who controlled the land and wealth. The majority of the population, including farmers and laborers, worked the land and provided the agricultural surplus. There were also craftsmen, merchants, and scribes who contributed to economic activities and trade.