A pleasant surprise for the Egyptian economy.. What happened.. Let’s see what the story is..
Recently, the credit rating agency Moody’s, one of the three largest credit rating agencies in the world, issued a report in which it expected the Egyptian economy to grow by 5% in the fiscal year 2026. Moody’s also said that the average inflation rate in Egypt will decline in the next fiscal year to 16% compared to 27.5% in the current fiscal year before declining to 13% in 2026.
The agency explained its positive expectations as stability in economic and financing conditions and support for credit quality for emerging market governments, companies and institutions during 2025. It said that growth in gross domestic product in emerging markets and Egypt, including them, will be stable in general, with inflation rates slowing and interest rates beginning to be reduced.
The agency also said that Egypt will benefit from lower credit spreads and higher bond issuance due to the increased appetite of investors to invest in emerging market bonds, including the Egyptian market, and this will cause a positive cycle that will include an increase in investment flows, an improvement in the value of currencies, and a decline in asset risks, and all of this will ultimately support output growth. GDP is greater.
Not only that, Moody’s also expected a decline in the average debt-to-GDP ratio for emerging market governments during the coming year because lower interest rates and stronger revenues will help reduce the fiscal deficit of countries like Egypt.
Of course, the reports of these international classification agencies are very important because they will be like a guide for investors who look at the classifications of international classification agencies so that they know that their reports are important before entering into any market. The recent expectations of the classification agencies for Egypt are positive and very important and will open the way for new investments in the Egyptian market, which is characterized by attractive factors. Very large, such as the decline in currency prices and at the same time the diversification of economic activities and the availability of a strong and modern infrastructure.
If you remember that Fitch credit rating agency raised its rating hours for four Egyptian banks, which are the National Bank of Egypt, Banque Misr, Banque du Caire, and Commercial International Bank, to a positive outlook from stable, and the same agency raised Egypt’s credit rating, days ago and for the first time in 2019, in a positive indicator of improving economic indicators. Egyptian newspaper after the March 6 reform measures and unification of the exchange rate.
As we know, the Egyptian state is now implementing a comprehensive vision of economic and financial reforms to work to attract $100 billion in direct foreign investments within 6 years at an annual rate of $15 billion through tax incentive packages and expanding the granting of golden licenses to empower the private sector.
Raising the credit rating will also contribute to increasing the demand for buying Egyptian dollar bonds in international markets, which will provide inflows worth $7 billion annually, and Egypt received $46 billion in direct foreign investment during 2024 as a result of the March 6 procedures, unifying the exchange rate, tax investment incentives, and expanding the granting of gold licenses.
