Cairo – Mubasher: Egypt’s Real GDP growth is expected to reach 5.4% during the fiscal year 2019-2020, compared to an earlier estimate of 5.3% for the current FY, according to a report released by Fitch Solutions on Thursday.
The investment will remain a key driver of growth in Egypt, giving the increase in the public spending on infrastructure projects and the rapid development of the hydrocarbon sector, the report added.
“Growth will also increasingly be underpinned by private consumption as households’ purchasing power gradually improves,” Fitch said.
The gas sector in the North African country is flourishing due to the increasing explorations in the Mediterranean and the exploration bids launched by the government, the global credit rating agency noted.
In March, Fitch Ratings upgraded Egypt’s long-term foreign-currency issuer default rating (IDR) ratings to ‘B+’ from ‘B’, with a stable outlook.
Moody's Investors Service also upgraded the long-term local-currency deposit ratings of five Egyptian banks including National Bank of Egypt (NBE), Banque Misr, and Banque Du Caire.
