Egypt’s PMI Exceeds 50, Indicating Economic Growth and Stability
Egypt’s PMI has surpassed 50 for the second month, indicating economic growth. Prime Minister Medbouly highlighted a $8.7bn increase in net foreign assets in January 2025, contrasting a significant deficit from the previous year. With foreign reserves at $47.4bn, the government aims to balance revenues and currency availability while supporting the private sector amidst geopolitical challenges.
Egypt’s economic reforms are yielding positive results, as indicated by the Purchasing Managers’ Index (PMI) surpassing 50 points for the second consecutive month. Prime Minister Mostafa Medbouly emphasized that this performance reflects a favorable outlook for economic growth during a recent press conference at the Cabinet headquarters.
Prime Minister Medbouly presented a report from the Central Bank of Egypt, detailing an approximate $8.7 billion increase in net foreign assets (NFA) for January 2025. This marks a significant improvement from the $29 billion deficit reported a year earlier, indicating substantial economic progress.
Moreover, he noted that the overall increase in NFA totals around $37 billion, with January contributing approximately 60% of this increment. Additionally, foreign exchange reserves have risen to $47.4 billion, demonstrating economic stability and the government’s capacity to meet market demands, particularly with heightened requirements for goods and currency ahead of Ramadan.
Medbouly stated, “The government is working to balance revenues and the availability of foreign currency, ensuring continued improvement in economic indicators.” He reaffirmed the commitment to a strategic plan focused on enhancing state revenues in foreign currency, while carefully managing its utilization without hindering market activity.
The Prime Minister also expressed support for the private sector, underscoring the government’s determination to prevent the imposition of restrictions that could stifle its growth. Despite acknowledging the fluctuations in economic indicators, he noted recent weeks have exhibited a certain level of stability, despite challenges faced due to geopolitical tensions affecting Suez Canal revenues.
He explained that a resolution to the Gaza crisis and a ceasefire could restore stability to global markets, allowing Suez Canal revenues to gradually normalize starting in April. Medbouly remarked, “This would contribute to strengthening the Egyptian economy and stabilizing financial resources.”
In summary, Egypt’s economic landscape appears to be on an upward trajectory, as evidenced by the PMI exceeding 50 for two consecutive months and significant increases in net foreign assets. Prime Minister Medbouly’s emphasis on government strategies for enhancing revenue and fostering private sector growth reflects a commitment to economic stability. The anticipated resolution of geopolitical issues may further bolster the Egyptian economy.
Original Source: www.dailynewsegypt.com
