Minister of Finance Mohamed Maait confirmed that Fitch’s decision to fix Egypt’s credit rating at “B+” with a stable future outlook, for the fourth time during the Coronavirus crisis, is a new international testimony that reflects the confidence in the ability of the Egyptian economy to face global economic challenges.
He added that the Egyptian economy is diversified and growing. “This confirms that we are on the right path, and that financial and economic reforms have made us more stable and cohesive in dealing positively with global crises. This is reflected in the ability to absorb and contain the negative effects of internal and external shocks, according to the testimony of international institutions,” he said. He pointed out that Egypt recorded the highest semi-annual growth rate since the beginning of the millennium at 9% of GDP during the period from July to December 2021, making the Egyptian economy one of the world’s few economies that managed to achieve positive growth rates.
Maait indicated that the International Monetary Fund raised its expectations in the “World Economic Outlook” report issued recently on the growth rate of the Egyptian economy from 5.6% to 5.9% by the end of next June. Standard Chartered Bank decided to expand its activities in Egypt, as one of the largest and fastest growing economies in the region, which confirms the importance of the elaborate implementation of the economic reform program with its gains. It has resulted in enhancing the ability to withstand the severe and exceptional turmoil witnessed by the global economy.
He said that implementing the structural reform program is a top priority for the government to improve the business climate, increase local and foreign private sector investments in all fields, especially in development projects such as infrastructure, education and health, in addition to improving the competitiveness of Egyptian products, and maximizing the proceeds of Egyptian non-oil exports in a way that contributes to improving the trade balance and building a strong industrial base.
Maait explained that the achieved economic growth was supported by balanced economic and financial policies during the past years, as the primary surplus in the public budget was maintained through savings on the expenditure side. He added that in light of the repercussions of the Russian-Ukrainian crisis, it is planned to reduce the budget deficit to 6.2% and reduce the debt rate to less than 90% by the end of next June.
Ahmed Kjok, Deputy Minister for Fiscal Policies and Institutional Development, said that Egypt is the only country in the Middle East and Africa that has retained the confidence of all three global rating institutions, Standard & Poor’s, Moody’s, and Fitch, during one of the most difficult periods in the global economy and the global economic challenges that followed. “This has prompted us to move forward in continuing structural reforms to strengthen the macroeconomic structure, enable the state to achieve financial goals, meet the development needs of citizens, enhance spending on health and education, and expand the umbrella of social protection,” he added.
