Standard & Poor’s (S&P) B rating of the Egyptian economy with a promising outlook opens the gate for new foreign investments in 2020, Minister of Finance Mohamed Moeit said on Sunday.
According to the Ministry’s press statement, S&P expected that the Egyptian economy will grow by about 5.7% in the current fiscal year 2019/20, amid expectations that the budget deficit and unemployment rate would decline in 2020.
It also expected the debt-to-GDP ratio to decline to 80.5% in 2022, noting that low inflation and interest rates will enhance private investment and encourage consumption.
Moreover, S&P mentioned that national projects, such as the Suez Canal Economic Zone, the New Administrative Capital, will maintain the growth achieved in the construction sector.
Commenting on the report, Minister Moeit said the S&P expectations for the continuation of
improvement in the performance of Egyptian economic indicators showed that the state’s economic reform programme succeeded.
The minister also assured the government’s commitments to continue implementing the economic reform programme, and put into effect the fiscal control measures which are meant to reduce the debt rate, and debt service.
Egypt embarked on a bold economic reform programme that included the pound floatation, a reduction in fuel and electricity subsidies, imposing taxes including the value-added tax (VAT), all with the aim of trimming the budget deficit.
Moreover, Deputy Finance Minister for Financial Policies Ahmed Kojak said that the improvement in the global indicators on the Egyptian economy reflects the success of the economic reform programme that includes a set of measures that are meant to boost public revenues, rationalise expenditure, and decrease debts.