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Fitch revises up Egypt's rating from B- to B, maintaining stable outlook
(MENAFN) Fitch Ratings announced on Friday that it has upgraded Egypt's long-term foreign currency issuer default rating from B- to B, with a stable outlook. This upgrade reflects a decrease in the country's external risks, successful policy adjustments, improved external buffers, and increased capital inflows, as well as a more flexible exchange rate regime.
In terms of inflation, Fitch reported that the rate fell to 26.4 percent in September, down from 35.7 percent in February. The agency forecasts that inflation will further decrease to 12.5 percent by the end of the fiscal year 2025. Additionally, it expects the central bank to maintain the interest rate at 27.25 percent, following a cumulative increase of 800 basis points during the first quarter of this year.
Fitch's outlook for Egypt's economic growth is optimistic, projecting a rise in GDP growth from 2.4 percent in the 2024 fiscal year to 4 percent in the 2025 fiscal year. This anticipated growth is underpinned by strengthening economic confidence, increasing real incomes, rising remittances, and an influx of foreign direct investment.
Overall, the upgrade by Fitch signals a positive shift in Egypt's economic trajectory, highlighting improvements in key economic indicators and the overall stability of the financial landscape.
In terms of inflation, Fitch reported that the rate fell to 26.4 percent in September, down from 35.7 percent in February. The agency forecasts that inflation will further decrease to 12.5 percent by the end of the fiscal year 2025. Additionally, it expects the central bank to maintain the interest rate at 27.25 percent, following a cumulative increase of 800 basis points during the first quarter of this year.
Fitch's outlook for Egypt's economic growth is optimistic, projecting a rise in GDP growth from 2.4 percent in the 2024 fiscal year to 4 percent in the 2025 fiscal year. This anticipated growth is underpinned by strengthening economic confidence, increasing real incomes, rising remittances, and an influx of foreign direct investment.
Overall, the upgrade by Fitch signals a positive shift in Egypt's economic trajectory, highlighting improvements in key economic indicators and the overall stability of the financial landscape.
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