Wednesday, July 12, 2017

Egypt's economy is recovering

Middle East Eye:

Things are looking up for Egypt’s beleaguered economy. At least investors think so, which is why they are pouring money into the country. Analysts are optimistic also. The news must come as welcome relief for the country's residents who have suffered brutal inflation and soaring unemployment.


The good news on the reform front is that this year there is light at the end of what has been a dark economic tunnel. Growth is expected to reach 3.5 percent this year, according to a recent report from New York-based bank Brown Brothers Harriman (BBH). Meanwhile, inflation has dropped to 29.7 percent in May from April’s record. It is expected to drop to around 18 percent by year-end, according to IIF forecasts.


Perhaps the best news of all is that capital is starting to flow into the country. “Foreign investors have taken notice [of the economic reforms] with inflows picking up sharply,” states a recent report from BBH.

Things are beginning to change at the margin in Egypt. This is what happened in Pakistan and I ended up with a 45% gain. Not guaranteed it will happen in Egypt but the setup is very similar.

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