Performance of Egyptian economy exceeded int'l institutions expectations: Finance Min.

CAIRO – 11 November 2020: The performance of the Egyptian economy in light of the Coronaviruspandemic exceeded expectations, according to the testimony of international institutions and credit rating institutions, including the International Monetary Fund, the World Bank, Golden Man Sachs, Standard & Poor's, Moody's and Fitch, Minister of Finance Mohamed Maait said.

Maait added that the fruitful economic reforms have given the Egyptian economy a measure of resilience in facing internal and external challenges.

He said that the Standard & Poor's Corporation, in its latest report, kept Egypt's credit rating in both local and foreign currencies unchanged at the “B” level, while also maintaining the stable outlook for the Egyptian economy for the second time within 6 months in 2020.

It also expected economic indicators to achieve good rates in the short term, as the Egyptian economy is recording real growth in the medium term by about 5 percent, and debt ratios to GDP will decrease in the medium term as well, in addition to achieving a sustainable primary surplus of 2 percent of GDP, starting From the current fiscal year, in light of the government's commitment to continuing the pace of reform and boosting and supporting economic activity and growth rates, Maait added.

The minister also stressed that Egypt is leading the Middle East and North Africa region towards green investment, by providing sustainable financing for environmentally friendly projects, in the fields of housing, clean transportation, renewable energy, reducing pollution, adapting to climate change, raising energy efficiency, and sustainable management of water and sanitation. In order to contribute to laying the foundations for comprehensive development, taking into account the environmental dimension, in light of Egypt's 2030 vision.

"We are continuing to implement economic reforms that improve the business operating environment, ensure the sustainability of public financial indicators and enhance the capabilities of the Egyptian economy to grow," Maait said, pointing out that the state relies a lot on the private sector as the engine of economic growth through which it can create new opportunities, maximize productive capacities and expand the export base.

He said that the state is keen to create a conducive environment to investment, especially in promising sectors such as renewable energy, petroleum and petrochemicals, and transport in its integrated sense, in addition to industrial activities.

The minister explained that the debt-to-GDP ratio decreased from 108 percent in the fiscal year  of 2016-2017 to 90.2 percent at the end of June 2019, and 87 percent by the end of June 2020, despite the challenges of the Coronavirus crisis, stressing that this reflects the success of the public debt management strategy aimed at diversifying funding sources. And reduce the burden of debt service, and prolong the life of the debt.

This came during his participation of the "Egypt Virtual Week" that kicked off on Monday, Nov. 9. It will last for four days till Nov. 12.

Egypt Virtual Week event is organized by the Egyptian British Business Association BEBA and the Egyptian-British Chamber of Commerce (EBCC) in cooperation with the Embassy of the Arab Republic of Egypt in the United Kingdom and the Department of International Trade (DIT).

DIT is a part of the U.K. government that works on helping businesses export and grow into global markets.

The event will discuss the green economy file and ways Cooperation between Egypt and the United Kingdom in this regard and deepening trade, economic and investment relations between the two countries.