Egyptian banks recorded a jump in net foreign assets during the first quarter of this year.
According to data issued by the Central Bank of Egypt (CBE), foreign assets in the country’s banks rose 8 percent to $23.54 billion by the end of March, compared to $21.73 billion in December 2020. Foreign assets refer to the value of overseas assets owned by a nation, minus the value of its domestic assets that are owned by foreigners, adjusted for changes in valuation and exchange rates. According to the CBE, during the first quarter of 2021 foreign commitments by Egyptian banks increased by about $1.907 billion to a record $19.885 billion, compared to $17.977 billion in December 2020. Egypt’s gross domestic product (GDP) growth will begin to rebound from 2022 on its foreign reserve buffers and debt market access, ratings agency S&P Global said, as it affirmed the country’s credit rating at B/B with a stable outlook.
Real GDP growth will average 5.3 percent between 2022 and 2024, S&P forecasts, due to higher public and private investment. That compares to an expected 2.5 percent growth in 2021.
Still, S&P’s rating is constrained by Egypt’s wide fiscal deficit, large public debt and low income levels.