Egypt’s Economic Growth Indicated by Rising PMI and Foreign Assets

Egypt’s Purchasing Managers’ Index has exceeded 50 for two consecutive months, indicating economic growth, as stated by Prime Minister Mostafa Medbouly. He reported a significant $8.7 billion increase in net foreign assets and highlighted the rise in foreign exchange reserves. The government aims to enhance foreign revenue while stabilizing the economy amidst geopolitical challenges, expressing hope for improved Suez Canal revenues following stabilizing global conditions.

Egypt’s Prime Minister, Mostafa Medbouly, announced that the country’s Purchasing Managers’ Index (PMI) has surpassed 50 for the second consecutive month, indicating a positive trajectory for economic growth. This information was shared during a press conference held at the Cabinet headquarters, where the Prime Minister elaborated on the implications of this development for Egypt’s economic reforms.

During the press conference, Prime Minister Medbouly referred to a report from the Central Bank of Egypt, which indicated a significant increase of approximately $8.7 billion in net foreign assets (NFA) as of January 2025. This marks a notable recovery from a $29 billion deficit recorded the previous year, underscoring the effectiveness of recent economic measures taken by the government.

The total increase in NFA has reached around $37 billion, with the increase in January accounting for nearly 60% of this figure. Moreover, the Prime Minister noted that foreign exchange reserves have risen to $47.4 billion, which contributes to economic stability and demonstrates the government’s capacity to meet market demands, especially with heightened demand preceding Ramadan.

Medbouly emphasized the government’s ongoing efforts to balance revenues with the availability of foreign currency to foster improvements in economic indicators. He stressed the commitment to a strategic plan that enhances state revenues in foreign currency while managing its expenditure to prevent adverse impacts on market activity and economic growth.

Acknowledging the fluctuations in economic indicators, he highlighted a recent equilibrium despite challenges such as the impact of the geopolitical situation on Suez Canal revenues. Medbouly expressed optimism that a resolution to the Gaza crisis and the establishment of a ceasefire would restore stability in global markets, allowing Suez Canal revenues to normalize as early as April. This development, he stated, would significantly strengthen the Egyptian economy and stabilize financial resources.

In conclusion, Prime Minister Mostafa Medbouly reported that Egypt’s PMI has exceeded 50 for the second month, signaling positive economic growth. He detailed an impressive increase in net foreign assets and foreign exchange reserves, both indicative of economic stability. The government aims to balance revenues and currency availability, while supporting the private sector, to ensure sustainable economic improvement. Furthermore, the resolution of the Gaza crisis may enhance Suez Canal revenues and overall economic conditions.

Original Source: www.dailynewsegypt.com