27 Oct 2021
S&P (Standard & Poor’s), one of the leading global sovereign credit ratings agencies, has affirmed Egypt’s credit rating at ‘B’ for the 4th time since the beginning of the Covid pandemic. The Minister of Finance commented on the positive rating, saying that it confirms the opinions of other ratings agencies and international institutions that there is strong global confidence in the strength of the Egyptian economy. Part of this confidence stems from their belief that the government’s comprehensive economic, financial, and structural reforms are charting a sustainable, inclusive high-growth trajectory for the Egyptian economy.
Recent reforms have resulted in a solid and diverse financing base, high foreign exchange reserves, and increasingly competitive exports. Furthermore, the government’s deliberate, balanced, and flexible response to the pandemic’s adverse economic effects has been praised by many institutions including the IMF (International Monetary Fund).
The Egyptian economy managed to achieve 3.3% GDP growth during FY20/21, in the height of the pandemic. This level of growth is one of the highest in the region and worldwide during this turbulent year. S&P forecasts 5.5% GDP growth for Egypt in FY23/24. Their forecasts for FY21/22 include the budget deficit narrowing to 6.8% (vs. 7.4% actual in FY20/21 and 8% in FY19/20), with a primary surplus of 1.5% (vs. 1.45% actual in FY20/21), and a public debt-to-GDP ratio of 86%.
(Source: Standard & Poor’s (English), Mubasher (English) (Arabic), Zawya (English), Business Today Egypt (English), Egypt Today (English), See News (English), Ministry of Finance, al-Maal, Amwal al-Ghad, al-Ahram, Akhbar al-Youm, al-Youm al-Saabe, al-Masry al-Youm, al-Shurouk, CNBC Arabia, al-Arabiya, Sputnik)