Egypt’s reforms are showing signs of success, Ahmed Feteha writes in Bloomberg, “foreigners are investing again in stocks and local-currency debt, and [USD] are becoming more available.” Feteha notes, however, that the benefits of the reforms are not yet apparent in all areas and lists a number of challenges. He says there are challenges to economic stability, as the “limited protests last week against lower bread subsidies illustrate the potential for instability,” even though the risk. Tourism is still struggling, especially with the continued flight ban from Russia. Also a concern is rising inflation and its impact on reducing the drive of consumption of GDP growth. Exports will also take time to adjust to relying less on imported inputs and overcome the “limited capacity to expand” and “significant red tape,” and the same applies to attracting foreign investment.

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