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The War in Gaza Had a Crushing Effect on the Egyptian Economy
(Ha'aretz) Zvi Bar'el - The Egyptian economy has suffered a serious, unexpected blow from the war in Gaza. Before the war, it was limping along - with the lingering effects of the pandemic, the Russian war in Ukraine having caused grain prices to soar, the Egyptian pound having fallen to an unprecedented low against the dollar, and the International Monetary Fund having halted loan payments to the country. The war in Gaza had a crushing effect on two crucial sources of revenue. The tourism industry, in which three million Egyptians are employed, was swiftly crippled. Cancellations, primarily at Red Sea resorts, hit more than 70%, many hotels shut down and many thousands of employees, guides and service providers were out of work. The Houthi attacks on Red Sea shipping and the diversion of shipping routes from the Suez Canal reduced the country's revenue from the canal by 40-60%, which translates into a loss of $4-6 billion a year. This situation also has a direct effect on Egypt's textile industry, which relies on imported raw materials from India and the Far East.