Fitch Ratings is forecasting that Egypt’s real GDP growth will recover to 5.5 percent in the financial year (FY) 2022/2023 that ending June 2022, the rating agency said in a recent report.
“We expect growth to recover to 5.5 percent in FY22 and to be maintained at just over 5 percent in the medium term, assuming tourism gradually returns, further growth in the energy and manufacturing sectors and gradual improvements in the business environment.” Fitch report read.
“Similarly, we forecast improvements in the budget deficit, government debt and the current account balance in 2021-2022.”
The rating agency has also affirmed Egypt’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘B+’ with a stable outlook.
Meanwhile, Fitch said it forecast Egypt’s real GDP growth to be 2.5 percent in the financial year ending June 2021, well below average growth of 5.5 percent in FY18 and FY19.
“Egypt’s ratings and Outlook are supported by a recent track record of fiscal and economic reforms, policy commitment to furthering the reform programme and ready availability of fiscal and external financing in the face of the COVID-19 pandemic.
