Moody's Expects Egypt's Economy to Grow 4.4% by End of FY

Moody's Corporation anticipated on Tuesday that the Egyptian economy would achieve a growth rate of 4.4% by the end of the current fiscal year.

Moody's said in a report that the economic reform program adopted by the Egyptian government was the major factor behind the capability of the Egyptian economy to deal with the coronavirus ramifications.

"The program helped reduce risks on Egypt's economy and different segments of Egyptian society," the report mentioned.

"The Egyptian economy managed to achieve a growth rate of 5.4% in the past two years," the report said, adding that introducing new investment laws and reform of the business atmosphere in Egypt contributed to supporting the Egyptian economy.

The report praised a decision by President Abdel Fattah El Sisi's economic decisions which aimed to ease the burdens resulting from the coronavirus.

The financial services company also highlighted the decline in the public debt from 103.5% in 2017 to 84.2% of the Gross Domestic Product (GDP) in 2019.

It also said that measures adopted by the Central Bank of Egypt (CBE) over the past few weeks have contributed to supporting the Egyptian economy and minimizing risks resulting from the pandemic outbreak.

The international rating corporation added that the CBE's measures have helped ease the economic burdens resulting from the coronavirus.

It added that the CBE's measures included reducing the interest rate by 300 points and expanding loan installments for persons and corporations for six months.

The report pointed out that liquidity with the Egyptian banking sector helped reduce risks resulting from the coronavirus.