Egypt Finance Minister Mohammed Mait said the standard and poor (S&P) decision to maintain the country’s credit rating in both local and foreign currencies reflected the continued confidence of international institutions in Egypt’s economic stability.
S&P has kept Egypt’s B credit rating unchanged while keeping the outlook of the economy stable for the second time within six months in 2020. The move by the international agency reflects the continued confidence of international institutions, particularly credit rating agencies, in Egypt’s stability and robustness. Economy.
It also reflects a general belief in the local economy’s ability to deal positively with the consequences of the novel coronavirus (COVID-19) epidemic, while surpassing all external and internal shocks resulting from it.
He explained that this comes as the government continues to implement the necessary financial, economic and monetary reforms that will improve the business operating environment.
These reforms will also ensure the sustainability of public financial indicators, and enhance the capabilities of the Egyptian economy for development and create productive employment opportunities.
Maite said the decision reflects the effectiveness and balance of the government’s economic and financial policies, particularly in dealing with the consequences of the coronavirus virus epidemic.
Compared to the results currently being experienced by other advanced and emerging economies, it has largely contributed to maintaining the stability of economic and financial conditions.
This is evident from the positive growth of around 3.6% in the Egyptian economy in FY (FY) 2019/20. In the wake of the outbreak of the epidemic, provision of all means and needs has also been made to ensure availability of health services, basic goods and other services to the citizens.
The minister pointed out that by adopting and implementing a package of structural reforms to increase the growth rate in economic activity and private sector participation, the government is pushing the pace of economic reform. The reform also aims to improve the business environment and environment, as well as strengthen governance systems and follow-up systems for economic performance.
He reported that the S&P report expected the Egyptian economy to achieve 2.5% growth in FY 2020/21 despite the challenges posed by the coronovirus epidemic. This reflects its projections of expected negative global growth during the current fiscal year, as well as projected negative growth rates for most countries.
Maait said that S&P had expected Egypt’s economy to return to a strong growth rate of 5.4% by 2022. This will be accompanied by the recovery of tourism, the return of strong growth in the energy and manufacturing sectors, and the improvement of trade. Environmental due to completion of structural improvements.
In addition, the Deputy Finance Minister for Financial Policies and Institutional Development, Ahmed Kouchouk, said that S&P expects a return to economic, financial and monetary indicators to achieve very good rates in the short term.
Egypt’s economy is registering a real growth rate of around 5% in the medium term, and a debt-to-GDP rate in the medium term, in addition to achieving a permanent primary surplus of 2% of GDP starting in FY 2020. Is lacking in / 21.
This has come in light of the Government’s commitment to continue the pace of improvement, push and support in economic activity and growth rate through preventive economic measures.
Ahmed Kouchouk said S&P experts praised the Egyptian government’s ability to achieve a primary surplus of 1.8% of GDP in FY 2019/20. This occurred despite the negative consequences of the coronovirus epidemic on the regional economy and the world as a whole.