Page 32 - issue 66 en
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ELITE
ELITE
As inflation stabilizes, the current Additionally, despite the current
27.25% interest rate is expected to be geopolitical tensions that led Suez canal
cut, reaching a real rate around 4%. As revenues to decline by more than half
a result, the debt interest-to-revenue this year, remains to be a moderate
ratio is anticipated to drop reaching threat to the economy overall, Fitch
37% in FY29 after the 61% peak in FY25 forecasts that Egypt will gradually
, given the short maturity of Egypt’s recover from the low Suez canal
domestic debt, which will lead to a revenues, reaching around half of the
reduction in the government’s debt fiscal year FY23 by FY26.
interest burden.
This upgrade comes as a spark of hope for
Moreover, Fitch forecasts Egypt’s GDP the overall outlook of Egypt’s economy,
to grow from 2.4% in FY24 up to 4% in as the Prime Minister Mostafa Madboly
FY25, and to 5.3% in FY26, mainly emphasized that upgrading Egypt’s credit
driven by strengthening confidence rating to B for the first time in 4 years will
and real incomes. Fitch also have a significant impact on its ability to
highlighted that deeper structural attract more investments and expand
reforms, including reforms that aligns current investments, through increasing
with the IMF EFF measures, are key to investor’s confidence, in a way that
boost the private sector’s activity and serves egypt towards expanding the
competitiveness, and to lift participation of the local and foreign
sustainable growth. private sectors in contributing to the
egyptian economy.
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