Planning Ministry reviews some international reports on the Egyptian economy

The Ministry of Planning and Economic Development reviewed the vision of some international reports on the Egyptian economy, most notably the Moody's rating agency report entitled "Domestic Financing Base and International Reserves Support the Stability of Egypt's Rating in 2021" and another issued by S&P Global Ratings

Dr. Hala El-Said, Minister of Planning and Economic Development, confirmed that the vision of international institutions is still positive towards the Egyptian economy and its ability to recover.
El-Said explained that despite the crisis that the whole world is facing, most international reports issued by ancient institutions in the analysts believe that the Egyptian economy has been able to withstand Pandemic, and can recover.
El-Said referred to the report of Moody's credit rating agency, which pointed out that the strong domestic financing base and international reserves capable of absorbing any renewal of capital exits support Egypt's credit rating in 2021, following up that according to the agency, fixing the credit rating last May reflects a track record of commitment With economic reforms over the past years.El-Said referred to what was confirmed by the Moody's report that Egypt is the only country that has maintained a positive growth path with the support of comprehensive reform in the years preceding the pandemic.El-Said highlighted  Moody's expectations of achieving economic growth of 2.4% in the current fiscal year, rising to 5% in the next fiscal year, before heading to 5.5% after that, supported by the diversification of the economy and the stimulus package that the government adopted to confront the repercussions of the pandemic.
El-Said explained that in the medium term, the effective adoption of business environment reforms will contribute to supporting unleashing Egypt's growth potential, according to Moody's.El-Said added that according to the Moody's report, the government's huge program to invest in infrastructure, although it is led by the government sector, will contribute to the continuation of growth and its return to its normal levels, starting with the 2022 fiscal year, following up that the Corona crisis has opened the way to strengthening social protection networks and accelerating digital transformation.Regarding the report of Standard & Poor's, El-Said explained that the report pointed out that the gradual recovery in private investment will support the real positive growth of the economy this year, as the report finds that the economic impact of the pandemic was less severe in Egypt than most emerging markets.El-Said noted that the report suggests that the real growth of investments in Egypt will rise to 2% provided that it will rise to 6.3% in the next fiscal year and 7% in the fiscal year 2023.
“Growth rates will return to pre-pandemic levels at 5.4% in the fiscal year 2023, provided that the fiscal year 2022 will witness the growth of 4.8%,” El-Said said.El-Said explained that the improvement in the global economy in 2021, according to the report, will lead to an increase in oil prices, which will benefit Egypt, which has become a net exporter of gas, as well as the government's measures to increase non-oil exports, which will contribute to narrowing the current account deficit to 2.5% of the GDP by the FY 2023.