The Economist lauds Egypt’s economic reforms

The Sisi administration’s economic reform agenda is getting some overduerecognition from The Economist. In a piece headlined “Egypt’s economy shows signs of life,” the newspaper (as it insists on calling itself) runs down all the positive steps that have led foreign investors to eye Egypt’s economy, including the devaluation, subsidy cuts, and the eurobond issuance. It stresses, however, that Egypt has a long way to go, with Emirates NBD’s PMI showing non-oil activity decreasing for the 17th straight month, inflation rising, and red tape continuing to be an obstacle to investment. It cites Juhayna’s losses as typical of troubles local firms face and warns that investors will be looking for signs that the government is backtracking on reforms either because of popular opposition or because Zohr coming online eases pressure. The Economist concludes on a positive note that the bitter medicine is starting to work, a far cry from its hatchet job last summer.