The Economic Pulse

The economic outlook for September 2023 reveals a complex mix of challenges, reforms, and investor responses. It included notable developments that raised questions and concerns about the country's economic stability and the progress of its reform efforts. Specifically, the International Monetary Fund (IMF) postponed the review of Egypt's $3 billion loan for the second time in a row; sparking a stir over Egypt's fiscal standing and its alignment with international expectations.

JPMorgan Chase & Co. made a significant announcement during this period, as they embarked on an extensive three to six-month assessment of Egypt's eligibility for inclusion in its bond index. This followed their earlier decision to place Egypt on a negative watch list, indicating concerns about the nation's economic stability.

Along the same line, in the most recent of developments, FTSE Russell announced on September 28th its plan to place Egypt on its watch list, potentially changing its status from "secondary emerging" to "unclassified" within equity index suites. This highlights Egypt's evolving position in global investments. Additionally, in August, Moody's Investors Service extended its review, raising concerns about Egypt's credit rating and highlighting continued scrutiny of the nation's fiscal health and creditworthiness by international credit rating agencies.