Egypt is a significant exporter of petroleum, cotton, and textiles which are all being driven higher by inflation.

Egypt’s export level was $25 billion compared to a GDP of $500 billion in 2010. GDP rose a healthy 5.3% last year,  but could be undermined by the current unrest.

Public debt is 80% of GDP which means that there is an increased risk of default on Egypt’s sovereign paper.

The US would be affected
more than any nation by a disruption of trade with Egypt. America accounts for 8% of the Middle Eastern nation’s export business, followed by Italy, Spain, Saudi Arabia, India and Syria which are all above 5%.

Egypt’s large import partners are the US and China, both at nearly 10%.

Agricultural commodities prices are rising sharply around the world as a food supplies tighten. The threat to cotton and textile exports from Egypt will only add to global inflation in these sectors.

Douglas A. McIntyre