Last Update 0:50
Monday, 17 December 2018

Moody's expects growth in Egypt to accelerate to around 5% by 2019

Moody's expects GDP growth to accelerate further to 5.5% by 2021

Ahram Online , Tuesday 16 Jan 2018
Moody
File photo: Credit rating agency Moody's (Photo: Reuters)
Share/Bookmark
Views: 6156
Share/Bookmark
Views: 6156

Moody’s expects Egypt’s GDP growth to accelerate to around 5 percent by 2019 and 5.5 percent by 2021, up from 4.2 percent in 2017, the credit rating agency said on Tuesday.

The forecast for GDP growth in Egypt comes “as structural reforms support more broad-based activity compared to the mostly consumption-driven pre-reform growth model,” Moody’s said.

Egypt had revised its GDP growth forecast to 5.3-5.5 percent for fiscal year 2017/18, from a previous 4.8 percent, the Planning Ministry announced last week.

Moody's forecast was part of the agency’s announcement of a stable outlook for the Levant and North Africa in 2018 on the back of improving growth that “offsets persistent fiscal and political risks.”

“High debt levels, low debt affordability, large funding needs and relatively high debt roll-over rates increase Lebanon, Egypt, and Jordan's exposure to a sharper-than-expected rise in interest rates,” the agency added.

This comes despite the fact that fiscal reform programmes and liquidity assistance mitigate exposure to higher interest rates, Moody's notes.

The agency also said that fiscal consolidation will be more challenging for Tunisia, Egypt and Lebanon.

Moody’s Investors Service had affirmed in August 2017 Egypt's long-term issuer and senior unsecured bond ratings at B3, maintaining a stable outlook.

The agency left Egypt’s rating unchanged since then, a decision mainly driven by the country's high debt levels.

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.