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 3.1% in FY 2024/2025.

Egypt implemented a national economic reform program to maintain fiscal discipline and increase the competitiveness of the Egyptian economy.

The report indicates that the value of the current account deficit is expected to decline during the coming period until 2026 in light of the flexibility of the exchange rate and its positive impact on increasing the competitiveness and earnings of Egyptian exports.

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