JK Marshall Mercantile - Ukraine War Threatens Egypt’s Economy

Seoul, Korea, South, March 29, 2022 --(PR.com)-- As the Russian invasion of Ukraine has escalated into full scale war, the global economy has felt the shocks of the conflict in various ways. For emerging economies, like Egypt, the economic consequences have been even more significant. A recent report by JK Marshall Mercantile revealed that many investors had chosen to exit emerging markets in the wake of the escalating conflict in Ukraine.

The report by JK Marshall Mercantile also noted that Egypt’s food security could be at risk and warned that it may be necessary implement additional measures to ensure the continued stability of the country’s economy. Traditionally, Egypt’s main sources of wheat and grain are Russia and Ukraine. Record high grain prices spurred by the Russian invasion have hit the African nation hard. Egypt uses the imports of grain and wheat too provide an inexpensive, subsidized source of food for more than two thirds of its population.

“Egypt has a long history of protests linked to food prices and it will likely be necessary to resort to additional measures to ensure food security in a country where almost half of the population are living below the breadline,” said Mr. Ha-Jun Seong, Chief Finance Officer at JK Marshall Mercantile.

The United Arab Emirates has already fast tracked a plan to invest billions of dollars by purchasing state held shares in companies in Egypt with a view to helping maintain stability in the region.

“Given the implications of the war in Europe, the UAE is understandably concerned about the security of the area’s regime. The aid being offered to Egypt is a necessary, proactive measure to ward off instability resulting from loss of food security in the country,” said Mr. Seong.

Egypt has also called on the International Monetary Fund for assistance in maintaining long-term economic stability. A new program aimed at ensuring economic and financial stability will work to sustain job growth and help the Egyptian economy to withstand the likely repercussions of the conflict in Ukraine.

In their recent report, JK Marshall Mercantile analysts noted that the new IMF program would not place any additional burdens on the citizens of Egypt and could entail additional IMF funding.