Euler Hermes upgrades Egypt’s risk rating, forecasts 5.2% growth this year

Euler Hermes upgrades Egypt’s risk rating, forecasts 5.2% growth this year: Euler Hermes has upgraded Egypt’s risk rating to C2 from C3 in its 1Q2018 review, and expects the economy to deliver 5.2% growth during the current fiscal year. Growth is expected to be more broadly based, with exports rising 10% throughout the year at the same times as inflation continues to decelerate. Egypt’s reform measures are still yielding positive results including strong foreign inflows, the credit insurance agency notes. “There were winners and losers in the short-run. Local manufacturers were among the winners, gaining market share since the lower EGP improved export competitiveness and was a powerful import diverter. But consumer-related sectors were hit by higher inflation.” On the flipside, the firm notes the “uncertain” and “protracted” political transition, regional instability, and persistently high poverty rates among our weaknesses.