S&P upgrades Egypt’s rating to ‘B’ as reforms drive a rebound in economic growth

Credit ratings agency S&P Global upgraded Egypt’s rating by a notch to ‘B’ from ‘B-’ on Friday, citing reforms undertaken over the past 18 months which have led to GDP growth rebounding sharply in fiscal 2025.

“Given the stronger GDP growth prospects, increased revenue alongside expenditure control, and primary surplus targets tied to an IMF program, we expect fiscal consolidation to continue, albeit at a gradual pace,” S&P said in a statement.

Egypt’s annual inflation rate has plunged from a record 38 percent in September 2023, helped by an $8 billion bailout program from the International Monetary Fund in March 2024

Alongside the IMF program, the commitment to a market-determined exchange rate, should continue to support Egypt’s GDP growth prospects and fiscal consolidation efforts over fiscal years 2025-2028, S&P said.

In the April-June 2025 quarter, Egypt’s tourism revenue rose 20 percent, showing a strong recovery from the impact of the pandemic, while remittances from Egyptians abroad, another main source of foreign currency, rose 36.5 percent.

According to S&P, the reforms undertaken over the past 18 months by the authorities, including the liberalization of the foreign exchange regime, have led to the sharp rebound in Egypt’s GDP growth, boosted tourism and inward remittances.

The agency maintained its outlook for Egypt at ‘stable.’