Fitch Ratings: Fitch Ratings said Friday that it upgraded Egypt’s long-term foreign currency issuer default rating to B from B- with a stable outlook. The rating agency noted that the upgrade reflects a combination of factors including the country’s lower external risk, policy adjustments, replenished external buffers, new capital inflows, and a more flexible exchange rate.
According to Anadolu Agency, inflation in Egypt has decreased significantly, falling to 26.4% in September from a high of 35.7% in February. Fitch forecasts this trend to continue, predicting inflation will slow to 12.5% by the end of the fiscal year 2025. The agency also projects that the interest rate will be maintained at 27.25%, following a series of rate increases totaling 800 basis points during the first quarter of the current year.
Fitch also projects that Egypt’s GDP growth will rise from 2.4% in the 2024 fiscal year to 4% in the 2025 fiscal year. This growth is expected to be driven by strengthening confidence, real incomes, re
mittances, and foreign direct investments.
