Fitch monitors 7 economic reforms and measures that raised Egypt’s rating to “B” and 4 forecasts to “stable”.. Get to know them.
Fitch has authorized For the credit rating, it highlighted 7 influential reforms and economic measures that prompted it to raise Egypt’s rating to “B” With stable future expectations.
Fitch confirmed, in its report:
1- The degree of risks decreased and the external position of the Egyptian economy improved with the “Ras El Hekma deal”
2- Completing financial discipline measures and achieving a large primary surplus of 6.1% and a total deficit of 3.6% of the GDP
3- Foreign exchange reserves increased by $11.4 billion during the first nine months of the year. 2024, to reach $44.5 billion
4- The presence of strong financial support from some international financial institutions… and expectations of new investment flows from some countries such as Saudi Arabia
5- Applying a flexible exchange rate .. Eliminated the parallel market and restored the overall economic balance
6- Expectations of a decline in inflation during the coming period after slowing down from 26.4% during last September to 12.5% by the end of the current fiscal year
7- The ceiling on public investments and expanding the concept of general government by including 59 economic bodies in the budget contributes to raising the efficiency of public spending and achieving financial targets
Fitch forecasts:
Fitch confirmed It is possible to raise the credit rating again to “B+” Or modify the future outlook from stable to positive if:
1- The degree of external risks to the Egyptian economy continues to decrease through an increase in foreign exchange reserves and a decrease in the current balance deficit,
2- The degree of external risks to the Egyptian economy continues to decrease through an increase in foreign exchange reserves and a decrease in the current balance deficit. Implementing structural reforms to enhance the private sector’s contribution to the Egyptian economy.
3- Increase access to global financial markets, maintain exchange rate flexibility, increase the degree of confidence in economic policies, and reduce inflation rates.
4- Continuation Achieve fiscal discipline to significantly reduce the cost of debt servicing while enhancing domestic resource mobilization and reducing off-budget public spending while maintaining a downward trajectory of public debt.
