Standard Chartered Expects Egypt’s Economic Growth to Accelerate to 4.7% in FY2027
Standard Chartered expects Egypt’s economic recovery to gain momentum over the next fiscal year, forecasting GDP growth of 4.7% in FY2027 as macroeconomic conditions improve and the government continues implementing structural reform measures.
The forecast was outlined in the bank’s latest Global Research Briefing (GRB), which projects a stronger medium-term outlook for the Egyptian economy despite ongoing external and domestic challenges.
While Standard Chartered revised its FY2026 growth forecast downward to 3.6%, citing near-term economic pressures, the bank believes easing inflation, improving external conditions, and continued reform efforts will support a faster pace of economic expansion in FY2027.
According to the report, Egypt’s strategic geographic location and diversified economic base continue to underpin its long-term investment appeal. The country remains a key gateway connecting major trade and investment corridors across the Middle East, Africa, Asia, and Europe, positioning it as an important regional economic hub.
The bank also expects interest rates to continue declining gradually through 2028 as macroeconomic stability improves. Lower borrowing costs are anticipated to support credit expansion, financing activity, and private-sector investment, creating a more favorable environment for economic growth.
Mohammed Gad, Chief Executive Officer and Head of Coverage at Standard Chartered Egypt, said Egypt remains one of the region’s most significant and diversified economies despite current challenges.
“Egypt remains one of the region’s most strategically important and diversified economies, supported by its scale, geographic positioning, and long-term reform agenda,” Gad said.
“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 that improving economic fundamentals are expected to strengthen investor confidence and attract additional regional and international capital flows.
“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,” Gad noted.
Standard Chartered believes that the combination of economic reforms, improving macroeconomic stability, and Egypt’s strategic market position will help create a more supportive environment for investment and private-sector growth in the coming years.
The bank added that Egypt is expected to remain a key component of the broader growth and investment story across the Middle East and Africa, supported by its large domestic market, ongoing reform agenda, and increasing integration into regional and global trade networks.