Egypt’s credit profile is weighed down by its fiscal profile, and monetary and financial stability. Nonetheless, these weaknesses are partly offset by resilient growth in the face of structural constraints.

Several external shocks have weighed on the country’s macroeconomic and external balances. The government has taken significant steps towards addressing imbalances, such as exchange rate unification in 2023. This has been anchored by its commitment to a new IMF programme which provides an additional USD 5 billion extended fund facility (EFF) augmenting an original arrangement of USD 3 billion.

The facility is conditional on completion of other key reforms. Egypt’s commitment under the IMF umbrella has also seen additional support from multiple donors and other announced foreign direct investments (FDI), which will support rectification/correction of previous imbalances.