Thursday, February 3, 2011

Does the turmoil in Egypt threaten the economic recovery

At first glance, the upheaval on the Nile might seem far removed from the world of Wall Street and Main Street. Egypt is not a major participant in global manufacturing networks, nor is Cairo a significant financial hub. But Egypt's political crisis could have implications for the global economy nevertheless. That's because the economic and political role Egypt plays in the Middle East gives it economic power beyond the easy-to-measure statistics. The turmoil in Egypt is putting a glaring spotlight on the fragility of political stability in the entire Arab world. That, in turn, is giving already-nervous investors yet another reason to worry about the questionable strength of the global recovery.

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