Egypt’s Economy Faces a Double Whammy

As Saudi Arabia and Russia engage in a war on oil prices, their mutual friend Egypt could fall victim to the fallout. The timing could hardly be worse for an economy already threatened by the global novel-coronavirus epidemic. As always, poor governance is likely to make a bad situation worse.

Remittances, estimated by the World Bank to be worth $26.4 billion last year, make up roughly 10% of Egypt’s GDP. This vital source of hard currency comes mostly from Egyptians working in countries dependent on oil exports. A collapse in prices could lead to layoffs, placing downward pressure on remittances reaching Egypt’s banks.