Egyptian Minister of Finance, Dr. Mohamed Maait, said that Standard & Poor’s decision to keep Egypt’s credit rating in both local and foreign currencies as it is at the “B” level, while adjusting the outlook from stable to negative for the Egyptian economy; As a result of pressures related to foreign transactions, it comes in light of the Egyptian economy’s exposure to difficult external pressures.
The minister added, in a statement, that the most important of these pressures is the repercussions of the war in Europe and the subsequent negative economic repercussions globally, including the unprecedented wave of inflation, pointing out that the Egyptian government provides financial support to the groups most affected by the current inflationary pressures.
He continued, “We are continuing to implement the economic reform program supported by the International Monetary Fund.”
He explained that the government will implement a package of financial, monetary and structural measures to deal with concerns related to the high external financing needs of the Egyptian economy, which prompted Standard & Poor’s to adjust the outlook for the Egyptian economy from stable to negative, which amounts, according to its estimates, to about $17 billion during the current fiscal year. And $20 billion during the next fiscal year 2023/2024.
The minister added that the Egyptian government is keen to implement what it announced in December 2022 of structural reforms, especially the offering program, and to attract more foreign direct investments, while completing financial control policies. Which leads – according to the report – to a continuous flow of foreign currency.
He stressed that Standard & Poor’s expects the economic growth rate to average 4% annually over the next three years, driven by the construction and energy sectors, in addition to other sectors such as information and communication technology, wholesale and retail trade, manufacturing industries, agriculture, and health.
The minister explained that Standard & Poor’s highlighted the continued achievement of fiscal discipline, which was largely evident during the results of the previous fiscal year 2021/2022, as the total deficit reached 6.1% of GDP, down from 6.8% of output in the fiscal year 2020/2020. 2021 in light of the Corona pandemic, and achieving a primary surplus for the fifth year in a row, at 1.3% of GDP.