Strong Economic Indicators Reported in Egypt as PMI Surpasses 50

Egypt’s Prime Minister Mostafa Medbouly announced that the Purchasing Managers’ Index (PMI) has consistently surpassed 50, signaling economic growth. The Central Bank reported an increase in net foreign assets, indicating a financial recovery. The government is focused on balancing revenues and currency availability, supporting the private sector, and addressing market fluctuations stemming from geopolitical issues.

Prime Minister Mostafa Medbouly announced positive developments in Egypt’s economy, as the Purchasing Managers’ Index (PMI) exceeded the critical mark of 50 for the second month, signaling anticipated economic growth. Medbouly made these remarks during a press conference at the Cabinet headquarters, emphasizing an optimistic economic outlook based on this index performance.

At the conference, Medbouly referenced a report from the Central Bank of Egypt reflecting an increase of approximately $8.7 billion in net foreign assets (NFA) as of January 2025. This change marks a significant recovery from a $29 billion deficit recorded the previous year, indicative of a strengthening financial position.

He pointed out that the total NFA increase stands around $37 billion, with January’s contribution accounting for roughly 60% of that total. Foreign exchange reserves have also risen to $47.4 billion, demonstrating economic stability amid rising demand for goods and currency ahead of Ramadan, according to the Prime Minister.

Medbouly stated, “The government is working to balance revenues and the availability of foreign currency, ensuring continued improvement in economic indicators.” He reaffirmed that the government is committed to a strategic approach focused on enhancing state revenues in foreign currency while optimizing its usage to stimulate market activity and economic growth.

The Prime Minister stressed the importance of supporting the private sector and affirmed that the government will avoid imposing restrictions that might impede its growth. While acknowledging fluctuations in economic indicators, he noted that recent weeks have demonstrated a level of equilibrium despite adverse impacts on Suez Canal revenues resulting from geopolitical tensions.

Moreover, Medbouly asserted that potential resolutions in the Gaza crisis could lead to a ceasefire, fostering stability in global markets. He expects that if this occurs, Suez Canal revenues may progressively stabilize by April, adding that this outcome would bolster the Egyptian economy and enhance financial resource stability.

In conclusion, Prime Minister Mostafa Medbouly’s statements reflect an optimistic trajectory for Egypt’s economy, highlighted by the improving Purchasing Managers’ Index and a significant increase in net foreign assets. The government remains committed to strategic economic reforms while supporting the private sector and navigating global market challenges. Stability from a prospective resolution to geopolitical conflicts may further strengthen the nation’s economic resilience.

Original Source: www.zawya.com