Last Update 19:55
Monday, 14 October 2019

Moody's: Egypt's GDP growth expected to reach 5.8% in 2020

MENA , Monday 30 Sep 2019
Moody
Moody's main headquarter (Reuters)
Share/Bookmark
Views: 1393
Share/Bookmark
Views: 1393

Moody's financial services company said Egypt's GDP growth was expected to reach 5.6 percent in 2019 and 5.8 percent in 2020, supported by the Central Bank of Egypt's decision to cut interest rate and the decline in the inflation rate. 

In a report, Moody's Investors Service forecast that the Central Bank of Egypt (CBE) would continue its interest rate cut policy in 2020, supported by the decrease in inflation rate. 

Moody's hailed the CBE's Monetary Policy Committee's decision to cut the overnight deposit rate, the overnight lending rate, and the rate of the main operation by 100 basis points (one percent) to 13.25 percent, 14.25 percent, and 13.75 percent, respectively.

The decision is positive for the banking sector, enhancing the business community's trust and economic growth. 

The interest rate cut and the decline in inflation will encourage capital expenditures. This, in turn, will promote consumer spending by boosting the interest-bearing debts' ability in light of the government funds by reducing the interest rate bill. 

Moody's Investors Service expected credit rates growth by more than 15 percent in 2020, adding the non-performing loan dropped to 4.1% of the total loans in March 2019. 

Earlier in August, the Central Agency for Public Mobilisation and Statistics announced that Egypt's annual inflation rate went down to 6.7 percent.

 
 
 

 
 
 
 
Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.