S&P Global Ratings yesterday raised its long-term sovereign credit rating on Egypt to ‘B’ from ‘B-’. At the same time, it affirmed the ‘B’ short-term sovereign credit rating. The outlook is stable.

‘’The stable outlook balances our view of Egypt’s improving growth prospects and improving balance of payments trends against continued high government deficits and debt, including external commercial obligations,'' it said.

The upgrade reflects the reforms undertaken over the past 18 months by the authorities -including the liberalisation of the foreign exchange (FX) regime - which have led to GDP growth rebounding sharply in fiscal 2025.

Real economic growth slowed to 2.4% in fiscal 2024. However, following the exchange rate adjustment in March 2024, economic activity rebounded sharply, with growth rising to 4.4% in 2025 and forecast to average 4.8% in 2026-2028.