trending Market Intelligence /marketintelligence/en/news-insights/trending/sbr84-xo4fdnd_wsq6x2ba2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

S&P upgrades Egypt on strong growth, improving external position

Street Talk - Ep. 64: Coronavirus jumpstarts digital adoption

Street Talk Podcast

Street Talk - Ep. 63: Deal talks continue amid bank M&A freeze, setting up for strong Q4

Street Talk Podcast

Street Talk - Ep. 62: 'Brutal' outlook for oil demand offers banks in oil patch no relief

Amid Q1 APAC Fintech Funding Slump, Payment Companies Drove Investments

S&P upgrades Egypt on strong growth, improving external position

S&P Global Ratings upgraded Egypt's long-term foreign- and local-currency sovereign credit ratings to B from B- with a stable outlook, citing the nation's strengthening economy and improving external position.

The rating agency said it revised its growth forecast for Egypt to an annual average of 5.4% over the fiscal years 2018 to 2021 from an average of 4.4% and expects expansion of 5.2% in the fiscal year ending June 30.

"We believe Egypt will experience a more broad-based recovery and a slight move away from a consumption-driven economy toward an increasing contribution from investment and net exports."

S&P noted that exchange rate liberalization and weakening currency helped reduce the nation's large external imbalances and bolster investor confidence, which resulted in higher foreign reserves and smaller current account deficits.

The current account deficit narrowed by 64% year over year to $3.4 billion in the first half of fiscal 2018. S&P said it expects the deficit to fall to 4.0% of GDP in fiscal 2018 from 6.5% in the previous year and further decline to 2.7% by fiscal 2021.

Egypt's net international reserves stood at $44.0 billion at the end of April, compared to $28.6 billion a year prior.

S&P said, however, that the currency depreciation, along with a tight monetary policy by the country's central bank, served to offset, a least in part, gains made on the fiscal front. "We estimate that the general government fiscal deficit will reach 10.1% of GDP in fiscal year 2018, from 10.5% in the previous year, falling to 9.0% in fiscal 2019," the rating agency said.

S&P expects the general government fiscal deficit to decline to 6.8% of GDP by fiscal 2021 and average 8.5% this year through 2021.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.