S&P Global Ratings maintains Egypt’s rating at B; Outlook stable

S&P Global Ratings maintains Egypt’s rating at B; Outlook stable

S&P Global Ratings has affirmed the local and foreign currencies credit ratings of Egypt at “B”, with a stable outlook for the second time in three months, Minister of Finance Mohamed Maait said in a statement on January 27th .

Egypt's economy is stable and is recovering from the repercussions of the global and local economic conditions over the past year.

S&P Global Rating predicts Egypt’s growth rate to reach 4% throughout the three fiscal years (FY) of 2022/2023, 2023/2024, and 2024/2025.

Regarding the total deficit of gross domestic product (GDP), the agency expected it to reach 7.5% in FY 2022/2023 and FY 2023/2024, and 7% in FY 2024/2025, in addition to its expectation that the inflation rate would reach 17% in FY 2022/2023, 12% in FY 2023/2024, and 8% in FY 2024/2025.

The report also stated that the public debt of GDP would reach 86.3% in FY 2022/2023, 82.1% in FY 2023/2024, and 80.7% in FY 2024/2025, in addition to its expectation that the trade balance deficit of GDP would reach 10.8% in FY 2022/2023, 9.5% in FY 2023/2024, and 8.7% in FY 2024/2025.

Moreover, S&P expects the current account deficit of GDP to reach 3.4% in FY 2022/2023, 3.6% in FY 2023/2024, and