It’s a fast-changing world with new insights every day; as a reader of the Israeli daily newspaper Haaretz, this is my selected news of the day. Let me share my special notes and personal comments to stay ahead in the perspective of what’s happening in the world.
Since the end of the cold war, the development of global trade has significantly affected the world economy. The inflation has been down while raising millions out of poverty.
And now, the world is likely to fall into a series of economic resistances that can divide global trade from future growth and rewrite the pattern of our trade structure as we know it. Export-oriented businesses need to follow the early signals of long-term geo-political effects.
The development in Egypt gives us an outlook of what’s going on worldwide.
-The emerging markets have been affected by rising global interest rates and the effects of the war in Ukraine.
In Egypt, the rising interest rates make the repaying of debt heavier in combination with the rise of import bills; Egypt, with 100 million inhabitants, is the world’s biggest wheat importer. The electricity usage has been reoriented, allowing Egypt to add a new strategy in exporting more natural gas and strengthen its financial position with foreign currency.
And in the end, adding higher global commodities prices to the situation above will affect the balance of imports and export and clarify the new pattern of trade.
This post is written from a neutral point of view without favour to any part or subject.