Egypt’s PMI has surpassed 50 for the second consecutive month, indicating economic growth. Prime Minister Mostafa Medbouly reported significant increases in net foreign assets and foreign exchange reserves. The government is focused on balancing revenues and currency availability while supporting the private sector. Positive expectations for the economy remain, dependent on global market stability amid geopolitical issues.
Egypt’s Prime Minister, Mostafa Medbouly, announced that the Purchasing Managers’ Index (PMI) has surpassed 50 for the second consecutive month, indicating promising economic growth. This performance reflects the positive impact of recent economic reforms within the country.
During a press conference held at the Cabinet headquarters, Prime Minister Medbouly highlighted a report from the Central Bank of Egypt. He stated that net foreign assets (NFA) increased by approximately $8.7 billion in January 2025, a significant turnaround from a $29 billion deficit recorded the previous year.
The Prime Minister further detailed that the total NFA increase now amounts to roughly $37 billion, with January’s growth constituting about 60% of this amount. He noted that foreign exchange reserves have grown to $47.4 billion, illustrating economic stability and the government’s capability to satisfy market demands ahead of the Ramadan period.
“The government is working to balance revenues and the availability of foreign currency, ensuring continued improvement in economic indicators,” Medbouly asserted, emphasizing the administration’s commitment to fostering a stable economic environment.
He reassured that the government is following a strategic plan aimed at enhancing state revenues in foreign currency while judiciously managing its deployment, all without compromising market activity. Moreover, Medbouly reinforced the importance of supporting the private sector and maintaining policies that encourage its growth.
While acknowledging some fluctuations in economic metrics, Medbouly indicated that recent weeks demonstrated a semblance of equilibrium, notwithstanding the adverse effects on Suez Canal revenues stemming from ongoing geopolitical issues. He expressed optimism that if peace is achieved regarding the Gaza crisis, Suez Canal revenues might normalize by April, contributing positively to the Egyptian economy.
“This would contribute to strengthening the Egyptian economy and stabilising financial resources,” Medbouly stated, indicating a hopeful outlook for future economic recovery.
The recent statements by Prime Minister Mostafa Medbouly reflect a positive trajectory for Egypt’s economy, driven by an increase in the PMI and substantial growth in net foreign assets. These developments illustrate effective economic reforms and the government’s commitment to stability and support for the private sector. Overall, the outlook appears positive, contingent upon the resolution of geopolitical tensions affecting revenue streams.
Original Source: www.zawya.com
