Egypt’s state of emergency could have major effects on economy
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Today the military-backed government of Egypt declared a month-long state of emergency, and supporters of deposed president Mohamed Morsi continue to clash with security forces around the country. Kimberly Adams, a journalist in Cairo, says today’s events will have both a small- and large-scale impact on the nation’s economy.
“Nobody’s out selling corn on the cob, nobody’s selling flowers, nothing. And then when it comes to bigger segments of the economy, like banks and the stock exchange, the banks shut down early today because of the violence, the stock exchange is going to be closed tomorrow,” says Adams.
Adams says that after Morsi’s ousting, money flushed into Egypt from the Gulf countries, the markets went up, and exports increased. But now, she says, the international community will start to lose confidence in the country.
“After that turnover in early July, we saw markets going up. We saw exports going up. We saw a lot of things that boosted the confidence of the international community in Egypt. Now today the stock market dropped by 1.7 percent,” says Adams. “The economic normal in Egypt right now is just making do.”
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