The conflict between Russia and Ukraine came as a strong blow to the global economy that is already limping from the effects of the Corona Virus pandemic.
The prices of oil surpassed the $100 limit per barrel for the 1st time in 7 years, grain prices and global trade are also hugely affected, and the global economy is expected to duffer from a big inflation wave.
But how does this conflict affect the Egyptian economy?
The 1st immediate effect is on the grain marker, as Russia and Ukraine are the biggest wheat exporters to Egypt. This is why the Egyptian government took steps to diversify exporters to include another 14 countries as well as boost the local production of wheat.
The 2nd sector o be affected in the tourism sector. Both Russia and Ukraine represent a major part of the Egyptian tourism arrivals, they usually come in big groups and are known to favor the Red Sea resorts. The government had announced that guests from both countries who are already in Egypt, can extend their stay as much as they like for their safety.
As for the oil sector, while the world might be on panic mode, the effects of this sector might actually represent a huge economic opportunity for Egypt. Experts state that in case the supply of oil to Europe is affected due to the conflict, Egypt is one of the top options for export to Europe.
Egypt has both the supply and the proximity to Europe to take over this task; this can also encourage investors to enter the Egyptian oil and gas market and boost discovery and extraction.
The global demand for oil and gas has the possibility to increase the shipping movements in the Suez Canal as well.