Egypt’s fiscal position still a major concern

At first glance, the interim Egyptian government seems to have made some progress in bringing the country’s dire public finances back under control. However, the apparent improvement can largely be explained by the influx of aid from the Gulf which will be used to finance the government’s stimulus package over the coming months. The tough decisions needed to put Egypt’s fiscal position onto a more sustainable path are unlikely to be taken until after elections, due later this year.