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Egypt, the war in Ukraine and wheat

The Russia-Ukraine crisis has already pushed up global wheat prices and Egypt is particularly vulnerable due to its high dependency on imports from both countries. This could lead to a small widening of Egypt’s current account deficit, but – with subsidies set to be cut back – the biggest impact is likely to come via higher inflation. That will hit household spending and also raises the risk of fresh social unrest.
James Swanston Middle East and North Africa Economist
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