Economy Alliances

Archive for the ‘global economy’ Category

The political crisis in Egypt and is affecting the global economy: oil prices have risen; the stock has been beaten and has multiplied the questions about whether the rising cost of oil will derail the global economic recovery.

It is expected that the Egyptian stock exchange not open its doors on Monday after a landslide of 17% at the end of last week. Most Gulf markets fell on Sunday. The Dubai stock market down 4.3% and Oman 3%, while that of Saudi Arabia rose 2.5%, after yielding 6% on Saturday. Crude oil futures jumped more than 4% on Friday in the United States to U.S. $ 89.34 a barrel.

The Egyptian economy is relatively small, with a gross domestic product last year about U.S. $ 217,000 million. The country, however, is far more important thanks to the Suez Canal, a key trade route for oil and other commodities that are transported from the Red Sea to the Mediterranean.

Apart from oil, about 8% of global maritime trade passes through the Suez Canal, according to Egyptian government figures. The curfew imposed in the country from dusk until dawn during the weekend made the shipping companies operating in the channel warns customers about possible delays. So far, the demonstrations against the government have obstructed the passage through the canal. However, if the violence in Egypt moved to neighboring countries that are major exporters of oil, oil prices could exceed $ 100 a barrel, which could stifle the nascent recovery in the global economy.