Egypt Politics & Security expects the economic reform process to continue at a steady pace throughout the next quarter. Electricity subsidy cuts and fuel price hikes will lead to an increase in inflation at the start of July, but significant fluctuations are not expected through the remainder of the quarter.

Although rising global oil prices could risk Egypt’s ability to meet future budget deficit targets, major oil producers – with Saudi Arabia at the helm – have recently agreed to increase supply to global markets to drive prices down. The Ministry of Finance is also working to develop a hedging strategy with international banks and financial institutions to protect against the risk of future increases.

The third quarter is also slated to witness further developments in Egypt’s plans to become a sizeable gas producer and a regional gas export hub. Egypt Politics & Security expects that Egypt will sign agreements to connect its electricity grid to that of Sudan and Saudi Arabia next quarter.

The article was taken from the Egypt Q3 Forecast which can be found in our Egypt Politics & Security publication. If you wish to discuss any of the contents of this article, or would like to speak to one of our consultants regarding your work in Egypt, then please contact us.