• S&P affirms Egypt’s rating
  • Rating remains constrained by wide fiscal deficits

US ratings agency Standard & Poor’s (S&P) has revised its outlook on Egypt to positive from stable and affirmed the B-/B rating.

S&P said that a stabilising political landscape, reforms that are promoting growth and continued support from Gulf States have allowed for a positive outlook.

But Egypt’s rating remains constrained by wide fiscal deficits, high domestic debt and low income levels according to S&P.

Egypt’s economy was given a major boost in March this year when president Abdul Fatah al-Sisi hosted the Egypt Economic Development Conference (EEDC) in Sharm el-Sheikh.

With the support of the GCC, the conference delivered a strong message of intent to the international investment community. Egypt has promised to breakdown administrative red-tape, amend ageing investment laws and encourage foreign direct investments.

The 2015/16 budget anticipates that real GDP growth will accelerate to 4.5 – 5 per cent, while nominal GDP will reach EGP2.7trn ($333bn). Additionally, the government’s budget deficit is expected to shrink to about 9.5 -10 per cent of GDP.