Credit ratings agency S&P Global upgraded Egypt’s rating by a notch to ‘B’ from ‘B-’, citing reforms undertaken over the past 18 months which have led to GDP growth rebounding sharply in fiscal 2025.
“Given the stronger GDP growth prospects, increased revenue alongside expenditure control, and primary surplus targets tied to an International Monetary Fund (IMF) programme, we expect fiscal consolidation to continue, albeit at a gradual pace,” S&P said in a statement.
Egypt’s annual inflation rate has plunged from a record 38 per cent in September 2023, helped by an $8 billion bailout programme from the IMF in March 2024
Alongside the IMF programme, the commitment to a market-determined exchange rate should continue to support GDP growth prospects and fiscal consolidation efforts over fiscal years 2025-2028, it said.
In the April-June 2025 quarter, Egypt’s tourism revenue rose 20pc, showing a strong recovery from the impact of the pandemic, while remittances from Egyptians abroad, another main source of foreign currency, rose 36.5pc.
The agency maintained its outlook for Egypt at ‘stable.’
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