Experts and Finance Ministry Welcome Fitch Affirming Egypt's 'B' Rating Amid Economic Resilience

Global credit rating agency Fitch has affirmed Egypt’s rating at “B” with a stable outlook, a decision welcomed by the Finance Ministry and economic experts as a testament to the Egyptian economy's resilience and ability to absorb shocks amidst regional turmoil.

According to a statement from the Finance Ministry, consistent and proactive policies have driven positive economic outcomes, highlighted by a projected growth rate of 5.1 percent during the 2025/2026 fiscal year, powered by expansions in the manufacturing, telecommunications, and information technology sectors. The primary surplus reached 4.9 percent of GDP, while the overall budget deficit narrowed to 5.8 percent, alongside a 27 percent increase in tax revenues achieved without imposing new burdens.

The ministry reaffirmed its commitment to balanced fiscal policies, aiming to stimulate economic activity and collaborate with public and private sector partners to foster growth. While high debt-service costs remain a primary challenge, the medium-term debt management strategy seeks to extend maturities and diversify instruments to mitigate refinancing risks.

Alia al-Mahdy, former Dean of the Faculty of Economics and Political Science at Cairo University, described Fitch’s decision as positive. Meanwhile, Yomn al-Hamaky, a professor of economics at Ain Shams University, noted that the rating aligns with macroeconomic indicators approved by the International Monetary Fund, emphasizing the need to maximize the potential of the Egyptian private sector and small enterprises.

Amr Youssef, a professor of economics and financial and tax legislation, highlighted that Fitch’s cautious decision was supported by Central Bank of Egypt foreign currency reserves reaching approximately $58 billion in September, net foreign assets nearing $19 billion, and the economy's ability to navigate the hot money crisis.

Finally, Abdel-Rasoul Abdel-Hadi, professor of accounting and taxation at Tanta University, emphasized the importance of relying on homegrown economic resources, boosting tourism, and implementing national manufacturing plans.