Egyptian cabinet spokesperson Mohamed al-Homsany explained that the impact of the current Iran and Israel war on the Egyptian economy hinges on how the crisis continues to unfold, and whether it will be contained in the short term or persist for longer.
During a telephone interview with TV host Lamis al-Hadidi on Monday, Homsany added that “In principle, it is very likely that oil price fluctuations will affect the economies of the region and the world, not just Egypt, even if they fluctuate between ups and downs.”
The government’s promise not to raise fuel prices for six months was confirmed by the Prime Minister and the Minister of Petroleum, and the government is committed to it until October, he said.
“We hope that the crisis will be contained before that date,” Homsany added.
“It is very likely that it will have an impact on the efforts of various governments to reduce inflation rates.”
“Among the impacts, as many analysts have pointed out, if the crisis lasts a long time, global supply chains will be affected, and this will consequently be a factor influencing the economic conditions in various countries,” he said.
He noted that the macroeconomic indicators of various countries around the world may be also affected, but “the final extent of our impact from the crisis cannot be determined.”
The government has generally decided to act proactively to address the situation by forming a committee and then making the appropriate decision at the highest possible level at the appropriate time, Homsany said.
“Specifically, with regard to providing the state’s needs for petroleum products and natural gas, the government has anticipated any situation through a plan that has been developed over the past months to meet those needs,” he concluded.
