Egypt’s economy is on the mend. Its current account deficit shrunk by almost 60% to $6bn for the 2017-18 financial year. But higher oil prices could derail the country’s subsidy reforms and it’s still on track for a massive budget deficit this year.

Two years on from Cairo’s November 2016 decision to devalue the currency as part of a $12bn assistance package from the IMF and Egypt’s finances look far more healthy.

In a 31 October statement, following the...