231. Egypt’s Economy Amidst Regional Conflicts
- Author:
- Sahar Albazar
- Publication Date:
- 10-2024
- Content Type:
- Commentary and Analysis
- Institution:
- The Washington Institute for Near East Policy
- Abstract:
- Egypt, strategically positioned in the heart of the Middle East and North Africa, is grappling with significant economic pressures exacerbated by regional conflicts and geopolitical instability. The multifaceted crises stemming from the Israeli-Palestinian war, the Sudanese civil war, Libya’s political disarray, and the Russia-Ukraine war have collectively intensified the economic strains on Cairo. These challenges not only impact Egypt's economy but also threaten regional stability. Given the challenges facing Egypt and the region, Cairo is expecting from the United States to play a supportive role towards its strategic partner in the region. The international perception of regional instability is affecting Egypt’s domestic economy; tourism accounted for over 24% of GDP and employing over 2.5 million. However, the perception of insecurity in neighboring countries has deterred international visitors. Tourist arrivals declined by an estimated 25-30% between 2010-2022 compared to pre-conflicts levels. The resulting drop in tourism revenue has placed an additional strain on Egypt's foreign exchange reserves and employment relies heavily on this sector for foreign exchange earnings and employment.
- Topic:
- Geopolitics, Economy, Crisis Management, Economic Crisis, and Regional Stability
- Political Geography:
- Middle East, North Africa, and Egypt