fbpx

Egypt’s Political Outlook Transitions From Negative To Stable

Egypt’s Political Outlook Transitions From Negative To Stable

Written by Nigel Wilson | From International Business Times

Egypt’s economic outlook has been upgraded from negative to stable by global credit ratings agency Moody’s in a move that suggests the North African country is becoming more hospitable to foreign investors.

The agency based its decision on a period of increased political stability in Cairo, which has seen three presidents in four years, as well as four prime ministers. Political turmoil fostered economic and social upheaval in the Arab world’s most populous nation, where economic growth had slowed to 2.2% at the end of the last fiscal year.

Moody’s kept the Egyptian government bond rating at Caa1.

Egypt’s President, former military chief Abdel Fattah al-Sisi, has implemented a number of structural reforms in the economy.

The country’s ailing energy sector was the primary target for Sisi, where a number of subsidies were partially removed in July 2014. The measures could trim the country’s budget deficit by 2.5% of gross domestic product, according to analysts.

Read more at International Business Times