'Finance': Standard & Poor's Rating Maintained at 'B/B' - Balancing Growth Prospects with Continued Economic Reform Momentum

Cairo – Nadeh Imam: The Ministry of Finance confirmed that fiscal policy priorities support and align with the economic path aimed at stimulating investment, growth, and employment in Egypt. It noted that the state’s public finance management operates with considerable flexibility to spur economic activity and drive growth, while adhering to a path of fiscal discipline and debt reduction.

In a statement following Standard & Poor’s decision to maintain Egypt’s credit rating at “B/B” with a stable outlook, the ministry said it would work to increase foreign direct investment inflows, diversify the growth structure, and boost exports of goods and services. It emphasized that proactive and consistent policies enhance the Egyptian economy’s capacity to absorb the repercussions of regional crises.

The ministry added that the stable outlook reflects a balance between growth prospects and the continued momentum of economic reforms in the medium term. It pointed out that manufacturing, telecommunications, and tourism are leading growth rates, which are projected to reach 5.1% during the 2025/2026 fiscal year.

It stressed that the private sector is regaining its activity and strength, accounting for 65% of investments and achieving high growth rates. The ministry noted that Standard & Poor’s report anticipates further growth as stimulus policies, simplification measures, and increased certainty continue.

She clarified that the primary surplus reached 4.9% of GDP, and the overall deficit declined to 5.8% of GDP last year despite all challenges. She affirmed that “tax incentives” contributed to raising the ratio of tax revenues to GDP to 13% in the last fiscal year, without imposing additional burdens.

The ministry added that rising debt service costs and financing needs pose challenges to public finances, but conditions will improve significantly with lower interest rates. It explained that exceptional revenues are being directed specifically to accelerate the plan to reduce government debt as a percentage of GDP.

It noted that the target is to reduce debt to 78% of GDP by June 2027 and to decrease external debt by approximately $1–2 billion annually. It emphasized that the government remains committed to more targeted social protection programs for eligible beneficiaries and those most in need.