Standard and Poor’s (S&P) revised Egypt’s sovereign credit outlook from “negative” to “stable” on Friday due to the projected support by the International Monetary Fund (IMF).
Moreover, the financial services agency projected that Egypt’s gross domestic product (GDP) growth will reach 4% or more by 2019.
On the other hand, an increase in the inflation rate is expected in the near future due to the flotation of the local currency and subsidy cuts.
Furthermore, Egypt’s rating is constrained by high public debt, low income, and fiscal deficit.
S&P revised the rating based on the IMF’s support to the government’s economic reform programme. It stated that Egypt’s economy will start recovering in 2018 and 2019 due to foreign direct investment inflows and domestic consumption.