Fitch Ratings Agency affirmed Egypt's rating at B+ with a stable outlook, indicating that the economic growth in Egypt has exceeded the average in most countries of the world throughout the COVID-19 pandemic. This is due to the contribution of flexible domestic demand, gas production and the public sector investment program, in the face of the decline in tourism and export-oriented sectors.
The real GDP grew by 3.3 percent in fiscal year 2021, down from 3.6 percent in fiscal year 2020, and 5.6 percent in fiscal year 2019.
According to Fitch, the global economic recovery and the resumption of tourism to Egypt, thanks to the end of the six-year ban on Russian flights to the Red Sea resorts, will lead to an increase in growth to 5.5 percent in the 2022-2023 fiscal year. Disclosing that Egypt's rating is supported by its record of continuous financial and economic reforms so far, as well as a large economy that has shown stability and resilience during the global health crisis. Adding that the ratings are constrained by the still large fiscal deficit, high general government debt as a proportion of GDP, domestic and regional security and political risks.
Source (Al-Arabiya.net Website, Edited)
