Cairo – Mubasher: Euler Hermes has upgraded Egypt’s risk rating to C2, instead of C3.
The Egyptian economy is expected to grow to 5.2% this year, the Paris-based credit insurance company said on its official website.
Exports of the North African nation are projected to rise by 10% over the current fiscal year as inflation is on a downward path, the company added.
Economic reforms in Egypt are still delivering positive outcomes, including strong foreign capital inflow, the company noted.
“There were winners and losers in the short-run. Local manufacturers were among the winners, gaining market share since the lower EGP improved export competitiveness and was a powerful import diverter. But consumer-related sectors were hit by higher inflation,” Euler Hermes highlighted.
On Tuesday, the World Bank forecast Egypt’s gross domestic product to grow by 5% in fiscal year 2018 and to rise slightly to 5.8% by 2020.
Moreover, the Institute of International Finance (IIF) expected Egypt’s economy to grow by 5.1% and 5.4% in 2018 and 2019, respectively.
