Main menu

Pages

Expert: Standard & Poor's affirmation of Egypt's rating for the third time confirms the strength of the economy


Dr. Hisham Ibrahim, Professor of Finance and Investment at Cairo University, said that Standard & Poor's fixing Egypt's credit rating at level B, with a stable outlook for the third time, is evidence of the strength of the Egyptian economy, which is one of the few economies that achieves a good growth rate in light of the pandemic crisis. Corona, at a time when the economic conditions have deteriorated in most countries.

 

The professor of finance and investment at Cairo University confirmed that the continued confidence of international institutions in the Egyptian economy is due to its recovery after the success of the economic reform process, which helped the Egyptian economy to withstand the Corona pandemic.

 

Standard & Poor's kept the credit rating of Egypt in both local and foreign currencies unchanged at the level of "B", while also maintaining the stable outlook for the Egyptian economy, "Stable Outlook", for the third time in a row since the beginning of the Corona crisis, which reflects the continued confidence of International institutions and credit rating institutions in the resilience of the Egyptian economy and its ability to positively and flexibly deal with the repercussions of the "pandemic", compared to countries with similar or higher credit ratings, at a time when economic conditions deteriorated in most of the peer and emerging countries.

 

The Minister of Planning and Economic Development, Hala Al-Saeed, had indicated that Standard & Poor's fixing Egypt’s credit rating is an important matter in light of the economic and financial turmoil that the world suffers from due to the outbreak of the Corona epidemic and the world’s passing of many structural changes in supply and production chains,

 

 

The Minister of Planning considered that Standard & Poor's credit rating institution has confirmed the degree of sovereign rating for the Egyptian economy at the level of B / B in the long-term and short-term, while maintaining a stable outlook, as a confirmation of the Egyptian economy's merit and ability to emerge from the global crisis and restore high growth rates. Enhance confidence in the Egyptian economy.

 

It is noteworthy that the report of the Standard & Poor's Corporation praised the existence of a broad and strong domestic financing base and a reassuring balance of foreign exchange reserves, which are two elements that represent a source of strength and solidity for the Egyptian economy, stressing that the most important factors that may lead to raising the credit rating of Egypt in the medium term are Continuing financial control efforts and continuing to reduce the path and rates of government debt to the domestic product, which contributes to reducing the financing needs of the Egyptian economy and achieving high and good economic growth rates.

 

Egypt was able to withstand the Corona pandemic, at a time when the pandemic affected the economies of many countries, and it also provided many protective measures for citizens that would mitigate the economic effects of this pandemic, pointing out that the Egyptian economy is moving forward towards more stability during the coming period.

 

The Egyptian economy was also able to achieve a growth rate of 3.6% during the fiscal year 2019/2020 and it is expected to achieve a growth rate of more than 3% this year as well, while the government targets growth rates of up to 6% during the period 2022-2024.

reaction:

Comments