Egypt’s Prime Minister Mostafa Medbouly reported that the Purchasing Managers’ Index (PMI) has exceeded 50 for the second month in a row, indicating economic growth. Net foreign assets have surged, and foreign exchange reserves have risen significantly, reflecting a stable economy. The government is focused on balancing revenues without hindering market activity, while ongoing geopolitical issues impact Suez Canal revenues.
Egypt’s recent economic reforms are yielding positive outcomes as indicated by the Purchasing Managers’ Index (PMI), which has surpassed 50 points for two consecutive months. Prime Minister Mostafa Medbouly, during a press conference, emphasized this trend as a signal of economic growth and stability.
He also presented the Central Bank of Egypt’s announcement of an $8.7 billion increase in net foreign assets (NFA) for January 2025. This represents a significant recovery from a $29 billion deficit experienced the previous year. The total NFA increase now stands at approximately $37 billion, with January contributing to about 60% of this growth.
In addition, foreign exchange reserves have climbed to $47.4 billion, highlighting the government’s efficacy in meeting market demands, particularly with the higher necessity for goods and foreign currency as Ramadan approaches. “The government is working to balance revenues and the availability of foreign currency, ensuring continued improvement in economic indicators,” Prime Minister Medbouly stated.
Medbouly further reiterated the government’s strategic plan to boost foreign currency revenue while managing its expenditure carefully, thus ensuring market activity and continual economic progression. He expressed a dedication to support the private sector, committing to policies that foster growth without imposing restrictions.
While acknowledging variability in economic data, Medbouly pointed out a recent stability in indicators, despite challenges posed by geopolitical issues affecting Suez Canal revenues. He remarked that if a ceasefire regarding the Gaza conflict is established, it could restore stability in global markets, allowing Suez Canal revenues to return to normal levels by April. “This would contribute to strengthening the Egyptian economy and stabilising financial resources,” he concluded.
Egypt’s economic reforms are demonstrating tangible success, highlighted by an increase in the Purchasing Managers’ Index and net foreign assets. The government’s strategic management of foreign currency and support for the private sector are critical components of fostering economic growth. Prime Minister Mostafa Medbouly’s remarks underscore the importance of geopolitical stability in sustaining economic recovery, especially regarding Suez Canal revenues.
Original Source: www.zawya.com
