Egyptian policymakers’ commitment (or lack of) to economic orthodoxy continues to provide cause for concern and, while we don’t share the view that sovereign default is a serious risk, the near-term economic outlook is challenging. Over a longer horizon, though, Egypt has enormous economic potential. We expect some progress in addressing the structural issues holding back growth, allowing the economy to achieve growth rates of around 5-6% over the next two decades. However, income convergence is likely to be slower than in many Asian economies at a similar income level.
In view of the wider interest, we are also sending this Middle East Economics Focus to clients of our Long Run Economics service.
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:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services