Minister of Finance : The economic expansion in Egypt significantly exceeds the expectations of “Standard & Poor’s”
Dr. Mohamed Maait, Minister of Finance, confirmed, The decision of Standard & Poor’s to fix Egypt’s credit rating in both local and foreign currencies at the level of “B.B” while maintaining a stable future outlook, After Fitch affirmed Egypt’s credit rating last week, It is considered a new certificate from international institutions in the strength of the Egyptian economy. It enhances our confidence in his ability to recover from the repercussions of the current global crisis, which has compounded the negative effects of the Corona pandemic, It posed severe challenges that extended to the economies of various countries; Affected by supply chain disruptions and rising freight costs, sharply increasing inflation, As reflected in the increase in the prices of goods and services,
He pointed out that the economic, financial and structural reforms taken by the Egyptian state helped provide a strong and diversified domestic financing base. It made us more capable of absorbing shocks and facing internal and external challenges.
Minister said, This decision is a new addition to the confidence balance of investors and international institutions. A strong stimulus to complete the path of financial and structural reform. The Standard & Poor’s report indicates that a positive rating may be considered in the medium term. As the economic expansion in Egypt significantly exceeds the expectations of the institution, He explained that this classification was supported by Egypt’s recent record in financial and economic reforms. its large economy and its strong growth, The stable future outlook also reflects positive expectations of the Egyptian economy’s ability to deal positively and flexibly with the Ukrainian crisis. and mitigate these exceptional shocks.
and pointed out, To the certification of Standard & Poor’s, That Egypt was one of the few economies that succeeded in overcoming the economic downturn in 2020. And its expectations that the Egyptian economy will achieve a growth of about 5.7% during the current fiscal year, The overall budget deficit rate is about 7% of the GDP in the fiscal year 2022/2023. While the average debt age is 3.5 years in 2022 instead of two years in 2016. Pointing out that the Egyptian economy continued to achieve a primary surplus; As a result of completing structural reforms, The development and automation of the tax system that has contributed to maximizing efforts to integrate the informal economy, Increasing the efficiency of tax collection, Expand the tax base.
explained, Standard & Poor’s praised the high growth achieved by the Egyptian economy during the first half of the fiscal year 2021/2022 by about 9% as a result of the recovery of a number of vital sectors such as tourism and industry, In addition to the major development projects that had a great impact in stimulating the construction sector, Pointing out that the government adopted a supportive stimulus package estimated at 1.8% of the GDP last March, enabled the state to deal with the repercussions of global economic challenges, and mitigate its effects on citizens. About 450,000 new families were added to the “Solidarity and Karama” beneficiaries. Increasing salaries and pensions and raising the tax exemption limit by 25% from 24,000 to 30,000 pounds.
For his part, Ahmed Kjok, Deputy Minister for Financial Policies and Institutional Development, said, The process of economic reform adopted by the state for nearly 6 years, Major development projects have played a major role in stimulating economic activity in various sectors of the state. Maintaining positive growth rates despite successive challenges, starting with the emerging market crisis, Through the Corona pandemic, Until the Ukrainian crisis, Pointing out that this balanced fiscal policy will enhance the ability of the Egyptian economy to achieve strong financial indicators represented in achieving a primary surplus for 4 consecutive years, And the goal is to reduce the total deficit to 6.2% next fiscal year.