Egypt’s “second revolution” has made the outlook for the Arab world’s most populous nation highly uncertain. The economy is already extremely fragile – growth is sluggish, unemployment is high and the fiscal deficit is widening. The good news is that Saudi Arabia, Kuwait and the UAE have recently pledged $12bn of aid, which should prevent Egypt from falling into a balance of payments crisis in the very near-term at least. This has buoyed the financial markets – the equity index is up by 10% since the start of the month.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services