Minister of Finance Mohamed Maait affirmed that the decision of Moody’s for credit rating to fix Egypt’s credit rating despite the complex external shocks facing the global economy and emerging countries is a very positive decision and confirms the continued confidence of international institutions in the resilience and solidity of the Egyptian economy in light of economic policies and reforms. and finances implemented over the past years
The Minister of Finance explained that the report and evaluation of Moody’s includes a tribute to the effectiveness and proactiveness of the implemented government policies and measures, as well as the ability of the Egyptian government to deal with crises in general, and in particular the current crisis, with an effective mechanism. Regarding the institutional capabilities of the Egyptian state and government, where it indicated in its report that its affirmation of Egypt’s credit rating at the B2 level is due to the “proven track record of the effectiveness of the implemented policies.”
The Moody’s report also indicated that the institution will closely follow the economic situation in Egypt in the coming months to take a decision regarding the sovereign assessment of Egypt, with the possibility of adjusting the future outlook of the Egyptian economy to a stable outlook with a positive improvement in the economic and financial conditions in Egypt, which is the goal that the Egyptian government is working on. To achieve it collectively and coordinated during the coming period.
The Minister of Finance explained that the decision to fix Egypt’s credit rating by the three major international institutions concerned with the credit rating of countries in the months of April and May and within less than a month during that severe and extremely difficult global crisis that casts a shadow on all countries of the world confirms largely and impartially the strength and solidity of the economy In light of the continued improvement of most economic and financial indicators, both at the level of high growth rates of the Egyptian economy, to reach 7.8% during the period July-March 2021/2022, and growth is expected to achieve 6.2% during the entire fiscal year and through a decline in unemployment rates To reach 7.2% in March 2022, which is the lowest unemployment rate achieved in many years, in addition to the continuation of the budget in achieving a strong and large primary surplus that is expected to be in the range of 1.2%, and the budget deficit for the current year has decreased to about 6.2% of the output, which reflects the continued improvement Public finance and budget indicators Despite all the external challenges and shocks that the Egyptian economy has been exposed to, it is like all emerging countries and even advanced economies, most of which witnessed a decline in the rates of economic activity and the deterioration of financial indicators its general public.
It should be noted that the credit rating of two thirds of African countries has been downgraded by at least one of the three major credit rating institutions since early 2020, but Egypt succeeded in fixing its rating during the same period with the recent assurances of maintaining Egypt’s credit rating by all major institutions. .
