In a significant move to stabilize its economy, Egypt has announced a one-year freeze on domestic fuel prices following a recent increase. The decision, confirmed by the petroleum ministry, comes after the government raised prices on a wide range of fuel products by 10.5% to 12.9%, marking the second hike this year. This aligns with Egypt’s broader strategy to reduce subsidies and address its budget deficit. Diesel, a widely used fuel in the country, saw a price increase of 2 Egyptian pounds ($0.0421) to 17.50 pounds per litre. The government remains committed to aligning domestic fuel prices with actual costs by December, as part of its agreement with the International Monetary Fund (IMF) under an $8 billion loan. The IMF has urged Egypt to cut subsidies on fuel, electricity, and food while expanding social safety nets. Despite these measures, Egypt’s current account deficit stood at $2.2 billion in the second quarter, with oil product imports rising to $500 million from $400 million a year earlier. The freeze aims to provide economic stability amid global market uncertainties.
分类： business
-
Egypt raises fuel prices for the second time this year
Egypt announced a 12% increase in fuel prices on Friday, marking the second such hike this year. The decision, communicated via a government Facebook post, did not specify the rationale behind the move but assured citizens that fuel prices would remain unchanged for at least one year. This adjustment is expected to exacerbate the already high cost of living, as Egyptians continue to face escalating inflation and rising daily expenses. Last year, the country witnessed significant price surges in fuel, subway fares, and a depreciation of the Egyptian pound against foreign currencies. According to the Central Bank of Egypt, annual urban consumer price inflation stood at 11.7% in September, down from 12% in August and 13.9% in July. The latest fuel price adjustments include diesel, which rose from 15.50 pounds ($0.33) to 17.50 pounds ($0.37) per liter, and 92-octane gasoline, which increased from 17.25 pounds ($0.36) to 19.25 pounds ($0.40) per liter. The government emphasized its commitment to maintaining refinery operations at full capacity and incentivizing partners to boost production, reduce import costs, and stabilize prices. Earlier this year, the minimum monthly wage was raised to 7,000 pounds ($138) from 6,000 pounds ($118.58) to alleviate some economic pressures. Egypt’s economy has been severely impacted by years of austerity measures, the COVID-19 pandemic, the Ukraine conflict, and the Israel-Hamas war. Additionally, Houthi attacks on Red Sea shipping routes have significantly reduced Suez Canal revenues, a critical source of foreign currency. In response to these challenges, Egypt secured an $8 billion bailout from the IMF, with fuel price hikes deemed necessary to meet the fund’s conditions for further financial assistance.
-
Experts: Washington’s policy shifts shroud global outlook
Recent shifts in US economic policies, including heightened tariffs and stricter immigration controls, are generating significant uncertainty and volatility in the global economic landscape, experts warn. During a recent webcast, Adam S. Posen, President of the Peterson Institute for International Economics, emphasized that the US economy is currently the primary source of global instability. These policy changes are dampening international trade and investment, with potential ripple effects across both advanced and emerging markets. The Peterson Institute’s semiannual forecast, released on October 9, 2025, highlighted that while optimism around artificial intelligence (AI) has temporarily buoyed the US economy, escalating trade barriers and reduced labor inflows are likely to exacerbate inflation and slow growth. The International Monetary Fund (IMF) echoed these concerns in its World Economic Outlook, projecting a gradual decline in global growth from 3.3% in 2024 to 3.1% in 2026, citing protectionism and policy uncertainty as key headwinds. US tariffs, now at their highest levels in nine decades, have sparked retaliatory measures and temporary trade front-loading, masking underlying economic weaknesses. Immigration restrictions have further strained labor markets, with net inflows reduced by an estimated 2 million in 2025. Despite these challenges, global GDP growth has been revised upward to 3.1% for 2025, driven by temporary factors such as inventory buildup and trade front-loading. However, experts caution that these practices are unsustainable and that inflationary pressures may intensify in the coming years. Emerging markets, particularly China and India, continue to sustain growth despite these headwinds, with China’s exports performing ‘surprisingly well.’ The IMF forecasts emerging market growth above 4%, with China playing a pivotal role in offsetting global economic slack. However, fragmentation in global trade is expected to limit gains, with trade growth projected at just 2.9% in 2025–2026. Posen concluded that US economic volatility remains the dominant force shaping the global outlook, with its policy responses to growth and inflation likely to have far-reaching consequences.
-
Shutdown could cost US economy $15b a week: Treasury
The ongoing US federal government shutdown, now in its third week, is projected to cost the economy up to $15 billion per week in lost output, according to a Treasury official. This clarification came after Treasury Secretary Scott Bessent initially overstated the impact, suggesting a daily loss of $15 billion. Bessent later corrected his statement, emphasizing the significant economic strain caused by the shutdown. The revised estimate is based on a report by the White House Council of Economic Advisers. Bessent warned that the shutdown is beginning to ‘cut into the muscle’ of the US economy, despite the sustained investment boom in sectors like artificial intelligence (AI). He attributed the economic momentum to President Donald Trump’s policies, including tax incentives and tariffs, which he compared to transformative periods in US history, such as the railroad expansion in the late 1800s and the internet boom of the 1990s. However, the shutdown has created a major obstacle to continued growth. The political deadlock in Congress over spending has intensified, with Trump threatening mass layoffs of federal workers. On Wednesday, a federal judge in California issued a temporary restraining order to halt the planned layoffs of 10,000 workers, following a lawsuit by labor unions. The judge ruled that the layoffs were ‘not ordinary’ and potentially illegal, especially as many employees were unaware of their termination due to inaccessible government email accounts during the shutdown.
-
Too many eggs in one basket: Colombia and Brazil get trade lesson
Recent US-imposed tariffs are significantly altering trade dynamics in Latin America, particularly affecting Colombia and Brazil. These tariffs have led to a sharp decline in exports to the US, prompting both nations to seek diversification in their trade partnerships, particularly with China and the European Union. In August, Colombia’s exports to the US plummeted by 13.7%, the steepest drop this year, coinciding with the implementation of a 10% tariff on Colombian imports. This downturn underscores the fragility of Colombia’s export recovery and its heavy reliance on the US market. Jose Manuel Restrepo, Colombia’s former finance minister, highlighted the vulnerability of small- and medium-sized enterprises (SMEs) in sectors like apparel, processed foods, plastics, and metals, which are most affected by these tariffs. Restrepo emphasized the need for Colombia to diversify its export markets and integrate more deeply with Latin American value chains and the Asia-Pacific region. Similarly, Brazil has experienced a consecutive decline in exports to the US, with a 20.3% drop in September. Jorge Arbache, former chief economist in Brazil’s Ministry of Planning, noted the potential for damaging factory relocations from Brazil to the US due to these tariffs. Both countries are now focusing on strengthening ties with other trading partners and enhancing their industrial diplomacy to mitigate the impact of US protectionist policies.
-
After winning Trump’s $20 billion, President Milei must win votes as Argentine industry reels
The once-bustling textile mill of the Galfione Group in southern Buenos Aires now stands eerily quiet. Luciano Galfione, the owner, walks through the factory, reminiscing about the days when 200 employees operated state-of-the-art machinery to produce fabrics for Argentina’s middle class. Today, only a handful of workers remain, spooling yarn and dyeing cloth. The factory’s operations have been slashed by 80%, and half the staff has been laid off or suspended. Galfione is now dipping into his personal savings to keep the 78-year-old family business afloat. This grim scenario is emblematic of Argentina’s broader economic crisis, exacerbated by President Javier Milei’s austerity measures and free-market reforms. Since Milei took office nearly two years ago, over 17,600 businesses, including 1,800 manufacturers and 380 textile companies, have shut down, according to Fundación Pro Tejer, a nonprofit representing textile manufacturers. The crisis has been fueled by falling domestic orders, surging competition from cheap imports, and reduced consumer spending due to higher unemployment and lower wages. As Argentina approaches midterm elections on October 26, widely seen as a referendum on Milei’s policies, the textile industry’s collapse highlights the broader challenges facing the nation. The economy has stagnated, manufacturing has been gutted, and consumer confidence has plummeted. Milei’s initial success in curbing inflation has been overshadowed by rising unemployment, stagnant wages, and increased costs for essentials like transportation and healthcare. The president’s reliance on high interest rates and central bank interventions to stabilize the peso has further eroded the competitiveness of Argentine industries. Meanwhile, the removal of trade barriers has flooded the market with cheaper foreign products, leaving local manufacturers struggling to compete. As Milei seeks financial support from the U.S., many Argentines remain skeptical about the potential benefits of foreign aid, emphasizing the need for domestic economic revival. The crisis has left thousands of workers unemployed, with families struggling to make ends meet. The future of Argentina’s economy remains uncertain, as the government grapples with the dual challenges of stabilizing inflation and fostering growth.
-
Wall Street steadies after its slide as banks recover some of their losses
The U.S. stock market showed signs of stabilization on Friday, with bank stocks recovering from significant losses earlier in the week. Despite this, Wall Street remains volatile, experiencing frequent fluctuations. The S&P 500 saw a slight decline of 0.1% in early trading, while the Dow Jones Industrial Average rose by 91 points (0.2%), and the Nasdaq composite dropped by 0.3%. Big Tech stocks, including Nvidia, faced downward pressure, dropping 0.6% amid concerns over inflated valuations driven by the artificial intelligence boom, despite strong profit growth. Meanwhile, bank stocks rebounded after several institutions, such as Fifth Third Bancorp, Huntington Bancshares, and Truist Financial, reported better-than-expected quarterly earnings. This recovery followed a sharp decline in the sector triggered by fears of bad loans affecting smaller and midsized banks. Zions Bancorp and Western Alliance Bancorp, both central to Thursday’s concerns, also saw gains, rising 3.4% and 2.9%, respectively. The market remains cautious as scrutiny intensifies over loan quality following the bankruptcy of First Brands Group, an auto parts supplier. Jefferies Financial Group, potentially impacted by the bankruptcy, rose 4.8% after a significant drop since mid-September. JPMorgan CEO Jamie Dimon warned of potential risks in the banking sector, likening them to ‘cockroaches,’ but analysts suggest the situation is not yet critical. Trading volatility persists amid geopolitical tensions, including President Trump’s tariff threats on China, though he later indicated a possible meeting with Chinese President Xi Jinping. Overseas, European and Asian markets saw declines, with Germany’s DAX dropping 1.8% and Hong Kong’s Hang Seng falling 2.5%. Treasury yields remained steady after Thursday’s sharp declines.
-
China’s biggest shopping event starts five weeks early to revive spending
China’s annual online shopping extravaganza, Singles’ Day, traditionally held on November 11, has seen an early launch this year as retailers strive to stimulate spending in a sluggish market. The event, originally created by Alibaba, has grown into a global shopping phenomenon, comparable to Amazon’s Prime Day or Black Friday. However, this year’s extended sales period, beginning in mid-October, reflects the broader economic challenges facing Chinese consumers. Issues such as rising youth unemployment, a prolonged property crisis, escalating government debt, and ongoing trade tensions with the US have led to a more cautious approach to spending. Despite government efforts to boost consumption through subsidies, wage increases, and discounts, retail sales growth continues to fall short of expectations. E-commerce giants like Taobao, JD.com, and Douyin are aggressively promoting the event, offering deep discounts and vouchers to entice shoppers. Alibaba has also integrated artificial intelligence into its platforms to enhance the shopping experience, making it easier for consumers to find relevant products. The cautious spending trend, which began during the Covid-19 pandemic, has persisted as China grapples with deflation. High-end retailers, including luxury brands like Louis Vuitton and Burberry, have been particularly affected, with sales declining in recent months. However, there are signs of optimism in the market, as shares of luxury brands such as LVMH and Moncler have risen, buoyed by indications of improved demand in the region.
-
Gold smuggling surges in India as price spikes before festivals
Gold smuggling in India has seen a significant uptick as the nation approaches the festive seasons of Dhanteras and Diwali, occasions traditionally marked by auspicious gold purchases. Government and industry officials report that the surge is driven by record-high gold prices and a supply crunch. Despite a reduction in import taxes from 15% to 6% last year, which initially curbed smuggling, recent weeks have witnessed a resurgence in illegal activities. Customs and Directorate of Revenue Intelligence (DRI) officials have foiled several smuggling attempts at various Indian airports. A Chennai-based bullion dealer noted that the process of bringing gold into India and liquidating it has become quicker and less risky due to strong festival demand and limited supply. Gold prices in India hit a record 128,395 rupees per 10 grams, a 67% increase this year, making smuggling highly lucrative. Grey market operators can earn margins exceeding 1.15 million rupees per kilogram by evading import duties and local sales taxes. A Mumbai-based bullion dealer highlighted the increasing profitability for smugglers as gold prices continue to rise. The situation is exacerbated by banks’ inability to meet full demand, leading to high premiums on available stock. Indian dealers are quoting premiums of up to $25 per ounce over official domestic prices, the highest in over a decade. In the 2024/25 fiscal year, government agencies registered 3,005 cases of gold smuggling and seized 2.6 metric tons of the metal.
-
The Wealth Circle to make Middle East debut at IgKnightED’25
The Wealth Circle (TWC), a global investment and learning platform, is set to make its Middle East debut at IgKnightED’25, an innovation ecosystem developed in collaboration with Khaleej Times. The event, which integrates media, mentorship, and market access, aims to connect founders, investors, and policymakers through curated events, summits, and digital communities. This partnership will introduce investor education, live deal showcases, and masterclasses to the event experience. TWC’s participation is part of the BIT Summit by Khaleej Times Events, now in its fourth edition, focusing on capital readiness and credible investment pipelines for startups. Following its soft launch at IgKnightED’25, TWC plans to roll out a full platform and native mobile app. The expansion into the Middle East and India aligns with the rapid growth of regional startup ecosystems, supported by initiatives like Dubai’s Future District Fund, Abu Dhabi’s Hub71+ Digital Assets Hub, Saudi Arabia’s National Technology Development Program, and India’s Startup India mission. TWC aims to bridge the gap in access to capital, mentorship, and trusted networks by offering curated deal flow, investor-led masterclasses, and private networking forums. The platform also provides quarterly-updated frameworks and databases to help ventures scale responsibly. Leading TWC is Nick Ayala, a U.S.-based entrepreneur and licensed investment adviser with over 15 years of experience in fintech, private markets, and financial services. Ayala has founded five companies, successfully exiting four, and has raised and advised on over USD 1 billion in private equity, venture, and real estate deals through his firm, Align Equity Group.