25 February 2024 02:39 PM

Maait hails S&P decision to maintain Egypt credit rating at B with "Stable Outlook"

Friday، 27 January 2023 - 03:59 PM

Finance Minister Mohamed Maait has stressed that the decision of Standard and Poor’s (S&P) to maintain Egypt's foreign and local currency credit ratings at B level with a "Stable Outlook" for the second time in three months reflects the international institutions' confidence in the Egyptian economy and its resilience.

In a statement on Friday, he added that this shows trust that the Egyptian economy has the ability to deal positively with local and international extraordinary economic conditions last year that were affected by the repercussions of the war in Europe and the coronavirus pandemic.

He said that the S&P's decision shows that Egypt managed to deal with international conditions with balanced and integrated ways to ensure stability of the economic conditions, adding that the Egyptian economy's future is stable in light of commitment to the pace of economic reforms backed by the International Monetary Fund (IMF) under a 48-month agreement.

He added that Egypt is implementing a national economic reform program to ensure economic stability and boost the Egyptian economy's competitiveness.

In its recent report issued on Thursday, S&P report said Egypt will continue to enjoy financial stability in the current fiscal year in light of what was achieved over the past years, citing a drop in total deficit to 6.1 percent of the gross domestic product (GDP) compared to 6.8 percent of the GDP in the 2020-2021 fiscal year.

The ministry continued to realize initial surplus for the fifth straight year at 1.3 percent of the GDP in the 2021-2022 fiscal year, he said.

The report hailed the government's efforts to rationalize spending and expand social protection programs to alleviate the impact of the international crisis.

S&P expected the average growth rate to reach 4 percent annually in the coming three years, the minister said.

He added that the S&P report referred to a noticeable improvement in the trade balance indexes of the 2021-2022 fiscal year.

Non-petroleum exports rose by 29 percent, he said, noting that a huge surplus was registered in the petroleum balance at dlrs 4.4 billion.

The Suez Canal revenues hit a historical record at dlrs 7 billion and are expected to reach dlrs 8 billion in 2023, he said, noting that the tourism sector's revenues ratcheted up last year to register dlrs 10.7 billion.

The foreign direct investments shot up by 71 percent to record dlrs 9.1 billion against dlrs 5.2 billion dollars in 2020-2021.


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