Standard Chartered: “Egypt’s Economic Recovery Expected to Gain Momentum into 2027”

Standard Chartered forecasts Egypt’s GDP growth to recover to 4.7% in FY27 as macroeconomic conditions gradually improve and reform momentum continues to support the country’s medium-term outlook.

While the bank has revised its FY26 GDP growth forecast for Egypt to 3.6%, reflecting near-term external and domestic pressures, the outlook points to a stronger recovery into FY27 supported by easing inflationary pressures, improving external conditions and continued economic reforms.

The bank’s latest Global Research Briefing (GRB) highlights that Egypt’s strategic position and diversified economy continue to support its long-term investment case, with the country well positioned across key trade and investment corridors linking the Middle East, Africa, Asia and Europe.

Standard Chartered’s research expects policy rates to decline further through 2028 as macroeconomic conditions stabilise, supporting credit growth, financing activity and private sector investment.

Mohammed Gad, Chief Executive Officer and Head of Coverage, 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.”

The combination of ongoing reforms, improving macroeconomic stability and Egypt’s strategic market position is expected to create a more supportive environment for investment and private sector activity in the years ahead. Egypt remains central to the broader growth and investment outlook across the Middle East and Africa.