Egypt’s Prime Minister Mostafa Medbouly announced positive economic signals as the Purchasing Managers’ Index (PMI) exceeds 50 for two months. Net foreign assets have increased by $8.7 billion in January 2025, a significant recovery from a previous deficit. Foreign exchange reserves are also rising, indicating economic stability as the government works to balance currency availability and revenue.
Egypt’s Prime Minister Mostafa Medbouly announced that the Purchasing Managers’ Index (PMI) has surpassed 50 points for the second consecutive month, indicating positive trends in economic growth. He attributed this improvement to the ongoing economic reforms within the country, signaling a favorable outlook for sustained growth.
During a press conference at the Cabinet headquarters, Medbouly referenced a report from the Central Bank of Egypt, revealing an approximate $8.7 billion rise in net foreign assets (NFA) in January 2025. This represents a substantial recovery, particularly when compared to a $29 billion deficit recorded just a year prior.
Medbouly reported that the total rise in NFA amounts to around $37 billion, with January’s increment making up nearly 60% of that total. Additionally, foreign exchange reserves reached $47.4 billion, showcasing economic stability and the government’s capacity to meet market demands, particularly ahead of Ramadan.
“The government is working to balance revenues and the availability of foreign currency, ensuring continued improvement in economic indicators,” said Medbouly. He also reaffirmed the government’s commitment to a strategic plan focused on increasing foreign currency revenues while prudently managing resources, all without impeding market dynamics or growth.
While acknowledging some fluctuations in economic indicators, Medbouly pointed out recent signs of stability, despite the adverse effects of geopolitical issues on Suez Canal revenues. He expressed optimism that if a resolution regarding the Gaza crisis is achieved, leading to stability in global markets, Suez Canal revenues could restore to normal levels by April. “This would contribute to strengthening the Egyptian economy and stabilising financial resources,” he commented.
In summary, Egypt’s economy is demonstrating resilience with the PMI indicating growth potential, increased net foreign assets, and rising foreign exchange reserves. The Prime Minister’s focus on strategic revenue management and support for the private sector reflects a commitment to fostering economic stability. Moreover, a potential resolution of geopolitical tensions may further bolster the nation’s economic trajectory.
Original Source: www.dailynewsegypt.com
