Growth picks up and debt falls in Egypt

Economic growth in Egypt is accelerating and the country’s debts will fall so long as there is not a slowdown in reform, says a ratings agency.

The economy is expected to grow 4.2% this year, according to Moody’s, with the growth rate predicated to rise to 5% by 2019. The budget deficit is expected to decline to 10% this year, down from 12% in 2016.

“Although Egypt’s economic growth is still below pre-revolution levels, it has started to pick up, and investor sentiment has also improved on the back of strengthened reform momentum,” said Steffen Dyck, senior credit officer.

The country still faces many challenges, such as high youth unemployment. Although political stability has increased, says Moody’s, “security risks remain elevated in certain areas, and pose a heightened event risk”.

The agency says Egypt’s sovereign rating will be stable so long as the country does not derail its planned process of economic and fiscal reforms.

©2017 funds global mena

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