Fitch keeps Egypt's rating at B
Fitch Ratings has revised Egypt's sovereign credit rating to "B" with a stable outlook, affirming that the Egyptian economy demonstrates a good capacity to absorb external shocks. The agency pointed out that economic growth remains strong, reaching 5.1% for the fiscal year 2025-2026, driven by tourism, export-oriented industries, and local consumption, despite an expected slowdown to 4.7% in 2026-2027. Additionally, Fitch confirmed that Egypt's foreign exchange reserves increased to $54.4 billion by the end of the first eight months of 2026, and noted an improvement in the resilience of the exchange rate despite a 14% decline in the currency against the dollar following geopolitical tensions — a decline offset by improved investment inflows. The agency explained that the current account deficit is projected to rise to 5.1% of GDP in 2025-2026 but will decrease to below 3.5% by 2027-2028, thanks to better trade balances and increased tourism growth. It also forecasted that inflation will decline to below 10% in 2027-2028 after rising to 12.3% in 2026-2027 due to higher oil and food prices, supported by ongoing reform policies and enhanced international support.
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