Egypt’s presidential election, Saudi budget approved

The result of Egypt’s presidential election that concludes next week is a formality, but once the vote is out of the way, it seems likely that economic policy will shift in a more orthodox direction, including a devaluation of the pound. If policymakers delay, this could raise the risk of a messier crisis and sovereign default further down the line. Elsewhere, Saudi Arabia’s 2024 Budget maintained the Kingdom’s commitment to a loose fiscal stance. But with optimistic estimates for oil prices, there is risk of large deficits that prompt a turn back toward austerity.