Egypt’s recent policy shift has been met with a lot of optimism among investors and will likely see its new IMF deal approved by the Executive Board tomorrow. But the policies involve some near-term economic pain and the authorities will have to work hard to address deeper-seated issues to unlock stronger long-term growth. Elsewhere, renewed threats by the Houthis against Saudi Arabia highlight how the ongoing Israel-Hamas conflict could spread across the region and also threaten global oil markets.
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