A prestigious financial services agency revised Egypt's sovereign credit outlook from "negative" to "stable" and projected its gross domestic product (GDP) growth will reach 4% or more fueled by domestic consumption and investments by 2019. Standard and Poor's (S&P) revised Egypt's sovereign credit outlook on Friday . The current rating is B-which might be due to the projected support by the International Monetary Fund (IMF). This outlook would likely to boast the Egyptian expectations inspite of the increase in the inflation rate being high and expected to continue due to the flotation of the local currency and subsidy cuts. S&P revised the rating based on the IMF's support to the government's economic reform programme. It stated that Egypt's economy will start recovering in 2018 and 2019 due to foreign direct investment inflows and domestic consumption. The agency revised Egypt's outlook to reflect balance between long-standing external, fiscal vulnerabilities among other factors This stable outlook balances Egypt's external, fiscal vulnerabilities, against likely IMF support after government's upfront delivery on program reforms.
