Standard Chartered expects Egypt’s economic recovery to gather pace over the next two years, forecasting GDP growth to accelerate to 4.7% in FY27 as improving macroeconomic conditions and continued reform efforts strengthen the country’s medium-term outlook.
While the bank revised its FY26 GDP growth forecast to 3.6%, reflecting ongoing domestic and external challenges, it expects economic activity to gain momentum in FY27, supported by easing inflationary pressures, improving external conditions and sustained structural reforms.
According to Standard Chartered’s latest Global Research Briefing (GRB), Egypt’s strategic geographic location and diversified economic base continue to underpin its long-term investment appeal. The report highlights the country’s strong position at the crossroads of major trade and investment routes linking the Middle East, Africa, Asia and Europe.
The bank also expects interest rates to continue declining through 2028 as macroeconomic stability improves, creating a more supportive environment for credit expansion, financing activity and private sector investment.
Mohammed Gad, Chief Executive Officer and Head of Coverage at Standard Chartered Egypt, said: “Egypt remains one of the region’s most strategically important and diversified economies, supported by its scale, geographic positioning and long-term reform agenda. While external pressures have weighed on activity levels in the near term, we remain confident in the country’s growth trajectory and medium-term outlook.”
He added: “The forecast reflects expectations that gradually improving macroeconomic conditions and easing inflationary pressures will support an acceleration in economic activity. This outlook is expected to reinforce Egypt’s appeal to regional and international capital flows, particularly as global investors increasingly focus on resilience, competitiveness and long-term opportunity.”
Standard Chartered noted that the combination of ongoing reforms, improving macroeconomic stability and Egypt’s strategic market position is expected to foster a more favourable environment for investment and private sector growth in the coming years.
The bank added that Egypt is expected to remain a key driver of growth and investment opportunities across the Middle East and Africa, supported by its large domestic market, reform agenda and expanding role in regional trade and investment networks.
