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A UN report estimates that the total economic cost of the Gaza war for the Egyptian economy will reach between USD 5.6 billion and USD 19.8 billion over the current and next fiscal years (2024-2025)
The Egyptian economy has been severely hit by the war in Gaza. The escalation of the conflict between Israel and its neighbours has become yet another obstacle to economic reforms and development in Egypt.
A UN report estimates that the total economic cost of the Gaza war for the Egyptian economy will reach between USD 5.6 billion and USD 19.8 billion over the current and next fiscal years (2024-2025). This represents a loss of between 1.6% and 5.2% of average GDP, depending on the extent of the conflict’s escalation. The country is suffering significant revenue losses due to the suspension of Israeli gas re-exportation.
Traffic through the Suez Canal and the tourism sector are likely to be the hardest hit, according to the report. Their revenues are expected to decrease by USD 3.7 billion to USD 13.7 billion over the current and next fiscal years.
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The unemployment rate could reach 9.1% in the event of a serious escalation of the conflict. These factors exacerbate a crisis already inflamed by the war in Ukraine, adding to unsustainable debt and a cost-of-living crisis that has persisted since 2022.
