Standard Chartered: Egypt’s Economy Shows Resilience amid Global Pressures

Despite mounting global economic headwinds, Egypt’s economy continues to demonstrate notable resilience, according to a new report from Standard Chartered Bank, which praised the country's macroeconomic stability and rising investor confidence.

In its latest mid-year economic outlook, titled “Global Focus – H2 2025 Forecasts”, the bank highlighted Egypt as a standout among emerging markets, particularly as economic conditions remain volatile in major economies such as the United States, China, and the Eurozone.

“Egypt’s macro stability supports strong foreign currency inflows from both portfolio and official sources,” the report stated, adding that these dynamics are “enhancing market confidence in the Egyptian pound.”

Standard Chartered expects Egypt to receive more than 50% of the $12.5 billion in major investment pledges from Qatar and Kuwait by the end of 2025. These inflows are seen as a significant cushion for Egypt’s foreign reserves and a testament to sustained interest from Gulf nations in Egypt’s strategic sectors.

This comes amid a broader effort by Egyptian authorities to attract foreign direct investment (FDI) and bolster private sector involvement, as the country implements reforms under its agreement with the International Monetary Fund (IMF).

While the Central Bank of Egypt continues a monetary easing cycle aimed at spurring economic growth, the report noted that carry trade remains a key draw for investors, particularly after Egypt passed a key test regarding the convertibility and availability of foreign currency.

The report emphasized that Egypt’s commitment to a more flexible exchange rate and recent currency adjustments have helped restore investor confidence in the Egyptian pound, even as global interest rates remain relatively high.

The IMF continues to call for stricter fiscal discipline and accelerated privatization efforts as part of Egypt’s reform agenda. According to Standard Chartered, these measures are essential to ensure sustainable long-term growth and to broaden the base of foreign and domestic private investment.

Standard Chartered forecasts Egypt’s GDP to grow by 4.5% in the 2025/26 fiscal year, underpinned by ongoing structural reforms and increasing private sector activity.

“Private investment is a key driver of Egypt’s recovery,” the report noted, underscoring the country’s potential as a resilient, reform-oriented economy in the Middle East and North Africa (MENA) region.