On our reading list this morning: Steel tycoon and former Mubarak-era NDP operative Ahmed Ezz makes a lot of economic sense in a letter he penned for Al Masry Al Youm arguing for economic optimism. Love the man (as many do) or loathe him (as many do), the piece is worth reading. His primary point is that everything is relative to the size of the economy. Egypt’s budget deficits have historically been over triple their current ratios to GDP, ditto the debt levels, which were at over 200% in the late 1980s (just after Ezz escaped his phase as a drummer in a 1980s rock band).

Increasing the GDP growth rate is key now, Ezz argues, saying that achieving a growth rate of 8% annually would automatically decrease the budget deficit by a quarter within two years, expand the Egyptian economy by a third in four years, and double its size within a decade. He also quashes the infamous myth that Egypt is perpetually on the verge of default, noting the facts that Egypt overwhelmingly borrows domestically and in EGP — with comparatively little reliance on foreign funding. Ezz also says letting the EGP’s value fall closer to the real exchange rate will improve economic activity significantly, despite the immediate price impact, which would taper over time while improving real income levels. H/t Marwan S.