MENA Weekly: Ceasefire in Gaza, Egypt’s fiscal future

The provisional ceasefire deal in Gaza, subject to final approval from both sides (which Israel's PM Netanyahu has called into question today), could mark a major de-escalatory step. For the neighbouring economies of Egypt, Jordan, and Lebanon, the economic spillovers of the conflict should begin to fade. Meanwhile, Egypt’s government is set to unveil a new social protection package to support lower income households. Previously, such fiscal loosening may have worried investors. But reports that a new fiscal rule for spending and a new debt policy are on the horizon may help to reassure investors about the longer-term trajectory for the public finances.