S&P upgrades Egypt’s credit outlook to positive

S&P Global Ratings has upgraded Egypt’s credit outlook to positive from stable, maintaining its long- and short-term credit ratings at “B-/B”. This revision underscores confidence in Egypt’s economic trajectory, propelled by exchange rate liberalization and commitment to ambitious fiscal consolidation targets.

Key steps in economic reform

S&P Global views Egypt’s exchange rate liberalization as a crucial milestone in bolstering confidence and fostering economic growth. Moreover, it highlights the importance of the government’s commitment to its ambitious budgetary consolidation targets in achieving economic stability and enhancing debt sustainability.

S&P Global’s positive outlook reflects optimism regarding further improvement in Egypt’s situation. Moreover, it signals the potential mitigation of the decline in foreign currency in the country.

In addition, the liberalization of Egypt’s foreign exchange rate will stimulate gross domestic product (GDP) growth and support the government’s fiscal consolidation agenda over time.