Positive Economic Signals: Egypt’s PMI Reflects Growth, Says Prime Minister
Prime Minister Mostafa Medbouly announced that Egypt’s PMI exceeds 50 for the second month, signaling economic growth. He reported a significant rise in net foreign assets and foreign exchange reserves, reflecting economic stability. Efforts are underway to balance revenues and foreign currency availability, while the government supports the private sector.|
Egypt’s Prime Minister Mostafa Medbouly has announced that the Purchasing Managers’ Index (PMI) has remained above 50 for the second consecutive month, indicating positive economic growth. He shared this information during a press conference at the Cabinet headquarters, signifying the effectiveness of the country’s economic reforms.
Medbouly referred to the Central Bank of Egypt’s report, which noted an approximate $8.7 billion increase in net foreign assets (NFA) in January 2025. This marks a significant change from the $29 billion deficit recorded a year prior, showcasing the improvement in the economic situation.
The Prime Minister highlighted that the total increase in NFA amounts to around $37 billion, with January’s growth contributing about 60% of this total. Foreign exchange reserves have also increased to $47.4 billion, reflecting economic stability and capacity to meet market demands ahead of the upcoming Ramadan.
The government is focused on balancing revenues and the availability of foreign currency, as emphasized by Medbouly. He reiterated that their plan targets increasing state revenues in foreign currency while rationalizing its usage to avoid disrupting market activities or economic growth.
While acknowledging fluctuations in economic indicators, Medbouly noted recent stability despite the geopolitical challenges affecting Suez Canal revenues. He expressed optimism that if a resolution to the Gaza crisis is reached, revenues would gradually normalize in April, potentially strengthening the Egyptian economy further.
In summary, Egypt’s economic indicators, particularly the PMI exceeding 50 and the significant increase in net foreign assets, underscore a positive trend in economic growth. Prime Minister Mostafa Medbouly’s remarks highlight the government’s commitment to fostering economic stability while supporting the private sector, even amidst global fluctuations. The anticipated recovery in Suez Canal revenues further indicates an optimistic outlook for Egypt’s economy in the coming months.
Original Source: www.zawya.com
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