Egypt’s Economic Growth Strengthened by Positive PMI and Rising Assets

The Purchasing Managers’ Index (PMI) in Egypt has exceeded 50 for the second month, indicating positive economic growth, according to Prime Minister Mostafa Medbouly. The country has also seen a significant increase in net foreign assets and foreign exchange reserves. Medbouly asserted that the government is implementing strategies to support economic development while mitigating impacts from geopolitical challenges.

Egypt’s Prime Minister, Mostafa Medbouly, has announced that the Purchasing Managers’ Index (PMI) surpassed 50 points for the second consecutive month, indicating promising economic growth. During a press conference, he emphasized that this performance signifies a positive outlook for Egypt’s economy.

Medbouly referenced a report from the Central Bank of Egypt, revealing an increase of approximately $8.7 billion in net foreign assets (NFA) in January 2025, a significant improvement from a deficit of $29 billion recorded the previous year. He noted that the total NFA increase has reached about $37 billion, with January’s contribution accounting for approximately 60% of this figure.

Moreover, the Prime Minister reported that foreign exchange reserves have risen to $47.4 billion. This enhancement showcases the government’s capability to meet market demands, particularly as the period prior to Ramadan generally sees a rise in demand for goods and foreign currency. Medbouly stated, “The government is working to balance revenues and the availability of foreign currency, ensuring continued improvement in economic indicators.”

The administration is focused on a strategic plan to boost state revenues in foreign currency while optimizing its usage, thereby avoiding any negative impacts on market activity or economic growth. Medbouly reiterated the government’s commitment to supporting the private sector and preventing restrictions that would impede its expansion.

Acknowledging current economic indicator fluctuations, Medbouly noted a recent sense of stability despite challenges, including the adverse effects on Suez Canal revenues due to geopolitical tensions. He stated that if a ceasefire is achieved in Gaza and global markets stabilize, Suez Canal revenues may gradually normalize by April, enhancing the Egyptian economy and reinforcing financial resources.

Medbouly’s comments reflect an optimistic perspective on Egypt’s economic trajectory as it navigates through various challenges, aiming to boost growth and stabilize its financial framework.

In summary, Egypt is witnessing positive economic developments, as indicated by a PMI above 50, increased net foreign assets, and rising foreign exchange reserves. Prime Minister Mostafa Medbouly emphasized a strategic approach to balancing economic demands and supporting the private sector. Prospects for stabilizing Suez Canal revenues further highlight potential growth in the coming months, demonstrating the government’s commitment to enhancing economic stability.

Original Source: www.zawya.com