Egypt’s PMI exceeding 50 for two consecutive months indicates economic growth. Prime Minister Medbouly reported an $8.7 billion increase in net foreign assets in January 2025. Foreign exchange reserves now stand at $47.4 billion, reflecting economic stability. The government aims to balance revenues and foreign currency availability, with optimism for gradual recovery in Suez Canal revenues if geopolitical tensions ease.
Egypt’s purchasing managers’ index (PMI) has risen above 50 for the second consecutive month, indicating positive economic growth, as announced by Prime Minister Mostafa Medbouly. This upward movement in the index suggests a favorable outlook for the economy’s expansion.
During a press conference held at the Cabinet headquarters, Prime Minister Medbouly referenced a report from the Central Bank of Egypt, which highlighted an approximately $8.7 billion increase in net foreign assets (NFA) during January 2025. This marks a significant recovery from a $29 billion deficit noted in the same month last year.
The Prime Minister elaborated that the total increase in NFA stands around $37 billion, with January’s contribution constituting about 60% of this amount. Furthermore, he revealed that foreign exchange reserves have climbed to $47.4 billion, underscoring economic stability and the government’s capability to satisfy market demands, especially with heightened need for goods and foreign currency approaching Ramadan.
Medbouly stated, “The government is working to balance revenues and the availability of foreign currency, ensuring continued improvement in economic indicators.” He reassured that a clear plan is in place to enhance state revenues in foreign currency while managing its expenditure sensibly, ensuring no adverse impact on market activity or economic development.
Acknowledging the fluctuations in economic indicators, Medbouly pointed out that recent weeks have displayed a certain level of stability, even with notable effects on Suez Canal revenues stemming from the current geopolitical environment. He mentioned that a resolution to the Gaza crisis, accompanied by a ceasefire, could restore stability in global markets, subsequently normalizing Suez Canal revenues by April. He stated, “This would contribute to strengthening the Egyptian economy and stabilising financial resources.”
In conclusion, Egyptian economic reforms are yielding positive outcomes, as evidenced by an elevated PMI and substantial increases in net foreign assets and foreign reserves. The government remains committed to balancing revenue generation with market needs, while also supporting the private sector. If geopolitical tensions resolve, particularly regarding the Gaza crisis, the economy is expected to stabilize further, potentially enhancing Suez Canal revenues and reinforcing financial resources.
Original Source: www.dailynewsegypt.com
