Egyptians are scheduled to return to the polls this month to elect a new parliament, which is likely to emerge as a body that is largely aligned with President al-Sisi. As we explain in this Watch, in the short-term this may well be interpreted by investors as a positive development for the economy. However, we are concerned that growing signs of authoritarianism mean the country remains susceptible to renewed social unrest. As the past four years have shown, this can be particularly damaging for the economy and financial markets.
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