File Photo: Standard Chartered headquarters in London. Photo courtesy of Wikipidia.
The international lender revised its forecast for Egypt’s GDP growth in FY2025/2026 to 3.6 percent, citing ongoing domestic and external pressures. However, it expects growth momentum to strengthen in the following fiscal year as economic reforms continue to take effect and external conditions improve.
According to the report, Egypt’s strategic geographic location and diversified economic base remain key strengths underpinning its long-term investment appeal. The bank noted that the country is well-positioned along major trade and investment corridors connecting the Middle East, Africa, Asia, and Europe.
Standard Chartered also projected a gradual decline in interest rates through 2028 as macroeconomic stability improves, a trend expected to support credit expansion, financing activity, and private-sector investment.
“Egypt remains one of the region’s most strategically important and diversified economies, supported by its scale, geographic positioning, and long-term reform agenda,” said Mohammed Gad, CEO and Head of Coverage at Standard Chartered Egypt.
In the report launch event held in Cairo, Gad asserted that Standard Chartered sees Egypt as an optimistic market with a promising economy despite the spillovers of the ongoing regional tensions in the Middle East.
While acknowledging that external challenges have weighed on economic activity in the near term, Gad said the bank remains confident in Egypt’s medium-term growth prospects.
He added that easing inflationary pressures and improving macroeconomic fundamentals are expected to support stronger economic activity, enhancing Egypt’s attractiveness to regional and international investors.
The report highlighted that the combination of ongoing reforms, improving economic stability, and Egypt’s strategic market position is likely to create a more supportive environment for investment and private-sector growth in the coming years, reinforcing the country’s role as a key growth market across the Middle East and Africa.
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