S&P Global Affirms Egypt Ratings at B/B as Fiscal Reforms Drive Growth
S&P Global Ratings, a unit of S&P Global, Inc. (NYSE:SPGI), has affirmed Egypt's sovereign credit ratings at B/B with a stable outlook. The decision comes as economic growth reached 5.1% in fiscal year 2025/2026, driven by manufacturing, telecommunications, and tourism. Flexible management of public finances helped deliver a primary surplus of 4.9% of gross domestic product (GDP) while narrowing the overall budget deficit to 5.8% of GDP.
The stable rating outlook reflects steady momentum in economic reforms and expanding private sector participation, which accounted for 65% of investment during the fiscal year. Simplified tax procedures helped boost tax revenues to 13% of GDP without imposing new burdens on taxpayers. Although high debt-servicing costs and financing needs remain key fiscal challenges, these pressures are expected to lessen as interest rates drop.
Going forward, attention shifts to Egypt's plan to reduce public debt to 78% of GDP by June 2027 and lower external debt by roughly $2.1 billion annually. The country is directing exceptional revenues toward debt reduction, while continuing to roll out targeted social protection programs and incentives to attract foreign direct investment.
Key points
- S&P Global affirmed Egypt's credit ratings at B/B with a stable outlook.
- Egypt achieved 5.1% GDP growth in fiscal year 2025/2026, led by manufacturing, telecom, and tourism.
- The private sector generated 65% of total investment, while the primary surplus reached 4.9% of GDP.
- Tax revenues grew to 13% of GDP through tax facilitation measures without raising tax burdens.
- Egypt targets bringing public debt down to 78% of GDP by June 2027 and cutting external debt by $2.1 billion yearly.
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What is Egypt's current credit rating from S&P Global?
S&P Global Ratings affirmed Egypt's credit ratings at B/B with a stable outlook, reflecting a balance between growth prospects and reform momentum.
What drove Egypt's economic growth in fiscal year 2025/2026?
Egypt recorded 5.1% economic growth in fiscal year 2025/2026, with manufacturing, telecommunications, and tourism acting as the primary drivers.
What are Egypt's public debt reduction targets by June 2027?
Egypt aims to reduce public debt to 78% of GDP by June 2027 and trim external debt by approximately $2.1 billion annually.