Egypt’s PMI exceeds 50 for the second month, indicating economic growth, said Prime Minister Mostafa Medbouly. Key indicators show an $8.7 billion increase in net foreign assets and rising foreign exchange reserves, suggesting economic stability. The government aims to boost state revenues while supporting the private sector. Future stabilization of Suez Canal revenues depends on geopolitical resolutions.
Egypt’s economic landscape is witnessing favorable developments, as Prime Minister Mostafa Medbouly announced that the Purchasing Managers’ Index (PMI) has surpassed 50 points for the second consecutive month. This achievement signals a promising outlook for economic growth, as stated by the Prime Minister during a press conference at the Cabinet’s headquarters.
Medbouly highlighted a report from the Central Bank of Egypt indicating an approximate $8.7 billion increase in net foreign assets (NFA) in January 2025, a remarkable turnaround from a $29 billion deficit recorded the previous year. The total enhancement of NFA is approximately $37 billion, with January’s contribution accounting for around 60% of this sum.
Additionally, the Prime Minister noted that foreign exchange reserves have climbed to $47.4 billion, underscoring the government’s capacity to fulfill market demands, particularly as the demand for goods and foreign currency heightens prior to Ramadan. He stated, “The government is working to balance revenues and the availability of foreign currency, ensuring continued improvement in economic indicators.”
Moreover, Medbouly underscored the government’s commitment to a strategic plan designed to augment state revenues in foreign currency while rationalizing usage, without compromising market activity or economic growth. The Prime Minister also expressed strong support for the private sector, pledging to avoid any restrictions that could impede its expansion.
While acknowledging variances in economic indicators, Medbouly noted that recent weeks have revealed a semblance of stability, despite the considerable impact on Suez Canal revenues due to the ongoing geopolitical climate. He indicated that if peace is restored in Gaza, allowing global markets to regain stability, Suez Canal revenues could start returning to normal levels by April. He remarked, “This would contribute to strengthening the Egyptian economy and stabilising financial resources.”
In summary, Egypt’s Prime Minister Mostafa Medbouly has highlighted significant positive trends in the country’s economy, as indicated by the rise in the PMI above 50 for two months. The increase in net foreign assets and foreign exchange reserves reflects economic stability. Furthermore, the government’s strategic plans aim to enhance revenue in foreign currency while supporting the private sector, all contributing to a positive outlook for economic growth in light of potential improvements in geopolitical conditions.
Original Source: www.zawya.com
