Egypt’s Prime Minister Mostafa Medbouly reported that the Purchasing Managers’ Index has exceeded 50 for two months, indicating economic growth. He cited an $8.7 billion increase in net foreign assets in January 2025, showcasing substantial improvement from the previous year. The Prime Minister emphasized the government’s strategic balance of currency management and support for the private sector while addressing the impact of geopolitical tensions on economic indicators.
Egypt’s Prime Minister Mostafa Medbouly has announced that the country’s economic reforms are yielding positive outcomes, as reflected by the Purchasing Managers’ Index (PMI) surpassing 50 points for the second consecutive month. This indicates a favourable outlook for economic growth.
During a press conference at the Cabinet headquarters, Medbouly referenced a Central Bank of Egypt report indicating a remarkable $8.7 billion increase in net foreign assets (NFA) in January 2025. This shows a significant change from last year’s deficit of $29 billion.
The Prime Minister detailed that the total increase in NFA now stands at approximately $37 billion, with January’s rise representing about 60% of this cumulative amount. He pointed out that foreign exchange reserves have climbed to $47.4 billion, reflecting a stable economy capable of satisfying market demands, particularly with heightened needs for goods and foreign currency ahead of Ramadan.
Medbouly stated, “The government is working to balance revenues and the availability of foreign currency, ensuring continued improvement in economic indicators.” He reaffirmed the government’s commitment to a coherent strategy aimed at boosting state revenues in foreign currency while managing its use effectively, without disrupting market dynamics or economic growth.
The Prime Minister acknowledged the fluctuations in economic metrics but noted recent weeks have displayed a semblance of equilibrium despite the considerable impact on Suez Canal revenues from geopolitical tensions. He expressed optimism that, should peace be restored in Gaza and global markets stabilize, Suez Canal revenues could be on track to normalise by April. “This would contribute to strengthening the Egyptian economy and stabilising financial resources,” he concluded.
In summary, the positive performance of Egypt’s Purchasing Managers’ Index, alongside significant increases in net foreign assets and foreign exchange reserves, underscores the effectiveness of the government’s economic reforms. Prime Minister Mostafa Medbouly’s assertions reveal a strategic approach to bolstering state revenues while maintaining market stability, with hopes for a stabilised global environment potentially enhancing the country’s financial resources further.
Original Source: www.dailynewsegypt.com
