The Central Bank of Egypt (CBE) expects a significant decline in inflation and a gradual return to price stability: the annual inflation rate is projected to fall from 28.3% in 2024 to an average of 14.0% in 2025 and 10.5% in 2026, before approaching the target range of 7% ± 2% by the end of 2026. At the same time, macroeconomic fundamentals are improving noticeably: real GDP growth is expected to increase strongly in the coming years, driven by a broad-based sectoral recovery, rising credit growth, and normalization in the Suez Canal. Favorable global conditions—declining inflation, more moderate financing conditions, and increasing capital inflows into emerging markets—add further support to this trend. S&P also reacted positively to these developments and upgraded Egypt’s long-term credit rating to “B,” which is expected to result in lower financing costs and greater investor interest in the future.
