Monday, March 13, 2017

Egypt begins to see results from economic reforms, challenges remain

Bloomberg:

Egypt’s efforts to ease a crippling economic crisis, including floating the pound and cutting subsidies, are showing signs of success. Foreigners are investing again in stocks and local-currency debt, and dollars are becoming more available.

(snip)

The pound has weakened by about 50 percent since the Nov. 3 float, helping to send the inflation rate above 30 percent in February. That’s hurting incomes and forcing Egyptians to spend more of their incomes on basic necessities.

(snip)

Egypt attracted $4.3 billion from July to December compared with $3.1 billion in the same period a year earlier, as investments in the oil sector rose. The IMF expects FDI to pick up to $9.4 billion in the current fiscal year and to gradually grow to $12.9 billion by 2021.

Not out of the woods yet but definitely good change at the margin.


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