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Egypt’s Economy Suffers $7 Billion Loss Due To Houthi Attacks On Red Sea Shipping

by THEFUTURE.TEAM

December 27, 2024

The Egyptian economy has faced significant setbacks in 2024, with losses amounting to $7 billion as a result of disruptions caused by Houthi rebel attacks in the Red Sea. These attacks have severely impacted the revenue generated by the Suez Canal, a vital artery for global trade and a cornerstone of Egypt’s economy.

Decline in Suez Canal Revenue

According to reports from Egypt’s presidency, Suez Canal revenue is expected to drop by 60% in 2024. The Houthi rebel assaults, which began in 2023, have led to the effective blockade of shipping in the southern Red Sea and parts of the Gulf of Aden. This disruption has forced many international trading companies to opt for longer, more expensive routes, further straining global supply chains.

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Impact on Egypt’s Economy

The Suez Canal contributes significantly to Egypt’s foreign exchange reserves. The ongoing crisis has exacerbated the economic challenges facing the nation, with the Egyptian pound hitting a record low, trading at just $0.020. Despite not directly targeting Egyptian assets, the Houthi attacks have disrupted shipping routes crucial for the canal’s operations, diminishing its role as a key trade passage between Europe and Asia.

Global Trade Implications

Handling approximately 15% of the world’s shipping traffic, including 30% of global container shipments, the Suez Canal’s strategic importance cannot be overstated. The disruption mirrors the economic fallout from the 2021 Suez Canal blockage, when a single container ship halted traffic for six days, pausing up to $10 billion in daily trade. Prolonged interruptions like those experienced in 2024 risk further elevating shipping costs, delaying deliveries, and impacting global economic growth, particularly in Europe.

The Wider Effects of the Crisis

The forced rerouting of ships due to security concerns has also inflated the price of goods and slowed delivery times globally. This has created a ripple effect, making the economic consequences felt far beyond Egypt’s borders. European markets, heavily reliant on the canal for efficient trade, are particularly vulnerable to these delays and increased costs.

A Critical Moment for Egypt

The ongoing situation underscores the fragility of Egypt’s reliance on the Suez Canal for economic stability. As the government navigates these challenges, the need for robust measures to safeguard this vital trade route and its revenues has never been more pressing. Addressing the impact of the Houthi attacks is crucial not only for Egypt’s economic recovery but also for ensuring the stability of global trade in the long term.

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EU Farm Output Prices Decline For The First Time In Nine Months

by THEFUTURE.TEAM

March 12, 2026

EU Market Adjustments Signal New Price Trends

Agricultural output prices across the European Union declined in the fourth quarter of 2025, marking a shift after several quarters of increases. Data from Eurostat shows that farm gate prices fell by 1.9% compared with the same period in 2024.

Crisis of Declining Prices In Select Markets

Cyprus recorded one of the more notable decreases in agricultural input costs among EU member states, with prices falling by 2.6% compared with Q4 2024. The reduction eased cost pressures for the local agricultural sector following periods of higher prices earlier in 2025. Across the EU, prices for goods and services consumed in agriculture remained relatively stable. Non-investment inputs such as energy, fertilisers and feedingstuffs showed limited overall changes during the quarter.

Country-Specific Divergence In Price Movements

Eurostat data highlights considerable variation across member states. Fifteen EU countries recorded declines in agricultural output prices. Belgium registered the largest decrease at 12.9%, followed by Lithuania (8.2%) and Germany (6.0%). At the same time, twelve countries reported increases in output prices. Ireland recorded the strongest rise at 6.8%, followed by Slovenia (5.6%) and Malta (4.2%).

Stability In Agricultural Inputs Amid Commodity Shifts

Agricultural input prices also showed mixed developments. Eleven member states recorded declines, including Cyprus (2.6%), Belgium (2.1%) and Sweden (2.0%). Other countries experienced moderate increases, including Lithuania (4.2%), Ireland (3.3%) and Romania (2.5%). Among major agricultural commodities, milk prices declined by 4.1% while cereal prices fell by 8.9% across the EU. In contrast, fertilisers and soil improvers increased by 7.9%, reflecting continued volatility in input markets.

Outlook For EU Agriculture

The latest Eurostat data points to uneven price developments across the EU agricultural sector. While input prices remained broadly stable in many markets, movements in output prices varied significantly between member states. These trends highlight the need for farmers and policymakers to adapt to shifting commodity prices and changing cost structures across the European agricultural market.