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During Egypt's Middle Kingdom (c. 2050-1710 BCE), the economy was characterized by agricultural prosperity, driven by the regular flooding of the Nile, which enriched the soil. State-sponsored projects, such as irrigation and infrastructure development, facilitated increased agricultural output and trade. Craftsmanship and trade flourished, with goods like textiles and pottery being produced and exchanged both locally and with neighboring regions. The centralized government played a crucial role in regulating resource distribution and ensuring economic stability.

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