Moody’s forecasts Egypt economic growth of 5-6% in four years

Egypt’s economy is expected to grow at a range of 5 percent and 6 percent in the next four years, said senior vice president at Moody’s Investors on Monday.

Moody’s outlook for Egypt remains “positive” given the recent economic, fiscal, legislative reforms, Constantinos Kypreos said at an investment conference taking place in Alexandria city.

The payment of arrears to foreign oil companies will make positive contributions to Egypt’s balance of payments and oil exports given the recent oil discoveries, Kypreos added.

However, Kypreos said Egypt’s debt levels are still high, posing a significant liquidity risk.

Moody’s said in a statement earlier this month it completed the periodic review of a group of issuers that includes Egypt and may include related ratings, with no changes in Egypt’s credit rating that is stable at B2.

“The credit profile of Egypt (issuer rating B2) is supported by high economic strength, reflecting the country’s large and diversified economy with robust growth prospects,” according to the statement.

The statement showed that the country’s banking system faces risks which can be mitigated by utlising Egypt’s potential given the sector’s stable funding structure, large liquidity buffers, and resilient loan performance.