Credit Rating Agency Fitch has upgraded Egypt’s credit rating from B to B+. It says the country is making progress in its economic reform programs.
The latest rating is expected to increase confidence in Egypt’s economy.
This is the fifth positive review issued by international rating institutions since the implementation of the country’s economic reforms in 2016.
According to Fitch, reforms in Egypt will continue to generate better economic outcomes beyond the International Monetary Fund IMF agreement.
Fitch maintains Egypt’s debt/GDP is on a downward path, underpinned by structural improvements to the budget and the emergence of primary budget surpluses.
“We expect spending on wages, subsidies and interest to fall by almost 5 percent of GDP from June 2016 to June 2020,” the report said.
It further said “Interest spending continued to limit consolidation, but was in line with budgeted amounts. Overall, revenue grew by 28 percent.”
The report reveals that the country’s budget sector deficit narrowed to around 8.6 percent of GDP with a primary surplus of 1.6 percent of GDP.
That is close to the government target of 2 percent of GDP.
Fitch says some challenges still facing Egypt include the continuation of targeted reforms to decrease public debt and increase foreign cash reserves.
Source: Africafeeds.com
