Economic Impact of Egyptian Turmoil Uncertain
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With the crisis in Egypt continuing, the International Monetary Fund has said it is willing to offer economical advice and assist if necessary; however, the organization says it is too soon to assess the overall economic impact of the turmoil.
Caroline Atkinson: In Egypt as in other countries, there’s been this issue of high unemployment, especially among the youth. It will be important for the government, whichever government it may be, to focus on that challenge and on that need for inclusive and broad-based growth.
We’ve seen some impact already on food and fuel prices, both of which are important, especially food prices,which can hurt the poor and vulnerable. Those impacts will be temporary provided that the turmoil is temporary. It really depends on how things unfold.
On food prices, it’s obviously a big problem particularly because a larger proportion of the incomes of the poor are spent on food, so they’re particularly hard hit by food prices. That’s true of the low-income people in advanced economies and in low-income countries.
Someday maybe mankind can all get along but really it’s funny how the blame for fuel cost increase is suspected from the uprising in Egypt, but I recall the increase before the uprise in Egypt. Who else in North American can recall a rise in fuel cost prior to the conflict in Egypt?