ALBAWABA – With the ceasefire agreement in Gaza going into effect on January 19, Egypt and other countries are expected to experience an economic boost. Egypt’s Suez Canal and tourism sectors are predicted to see significant benefits from the agreement.
How does the ceasefire in Gaza affect the economy of Egypt and other countries
Egypt and several countries in the Middle East are expected to see economic growth following the recent ceasefire decision in the Gaza Strip. According to Capital Economics, the British independent economic research firm, the economic declines experienced by Egypt and other countries are expected to reverse.
It is worth noting that Israel and Hamas sealed a ceasefire agreement last week, which went into effect on January 19.
Suez Canal, Egypt, and Lebanon
The Suez Canal, the artificial sea-level waterway in Egypt connecting the Mediterranean Sea to the Red Sea through the Isthmus of Suez and dividing Africa and Asia, recorded a loss of approximately $7 billion in revenue in 2024 due to the ongoing attacks and conflict.
According to Capital Economics, neighboring countries, including Jordan, Lebanon, and Egypt, have faced significant economic struggles since October 2023.
The Suez Canal recorded a loss of approximately $7 billion in revenue in 2024 due to the ongoing attacks and conflict. (Shutterstock)
Experts are forecasting significant growth for Lebanon’s economy in 2025, following the Hezbollah-Israel ceasefire agreement last November and the recent appointments of Joseph Aoun as the country’s president and Nawaf Salam as the new prime minister.
Egypt is also included in this optimistic economic forecast for 2025. Amid the ceasefire agreement, the Suez Canal is expected to return to normal operations, and the country aims to increase the public sector's minimum wage, raise the tax exemption limit, and boost pension contributions this year.
Tourism sector in Egypt and Jordan
Egypt and Jordan are expected to see a revamp in their tourism sectors in 2025, following the recent ceasefire decision.
According to Moody’s, the American business and financial services company, the ceasefire will significantly boost the tourism sectors in both countries, as they rely heavily on tourism revenues and foreign investment to support their economic growth.
