Egypt’s PMI surpasses 50 for two consecutive months, indicating economic growth, according to Prime Minister Mostafa Medbouly. A report highlights an increase of $8.7 billion in net foreign assets for January 2025, alongside rising foreign exchange reserves reaching $47.4 billion. The government remains committed to balancing revenues and currency availability to promote stability and growth, despite current geopolitical challenges affecting Suez Canal revenues.
Egypt’s economic landscape is witnessing promising changes, as the Purchasing Managers’ Index (PMI) surpasses 50 points for the second month consecutively, signaling growth. Prime Minister Mostafa Medbouly articulated this positive trend during a press briefing at the Cabinet headquarters, citing that such developments are indicative of a bright economic future.
In his remarks, the Prime Minister referenced a report from the Central Bank of Egypt, revealing a significant increase of approximately $8.7 billion in net foreign assets (NFA) for January 2025. This improvement is noteworthy, considering a $29 billion deficit recorded the previous year.
The total NFA increase stands at about $37 billion, with January’s contribution accounting for nearly 60% of this sum. Furthermore, foreign exchange reserves have reportedly risen to $47.4 billion, reflecting economic steadiness and the government’s capacity to fulfill market needs, particularly with a surge in demand for goods and foreign currency ahead of Ramadan.
Medbouly emphasized the government’s efforts to balance revenues with the availability of foreign currency to ensure continued progress in economic indicators. He reiterated a commitment to a structured plan that aims to bolster state revenues in foreign currency while managing its utilization judiciously, thus ensuring no adverse impact on market activity or economic expansion.
The Prime Minister acknowledged fluctuations in the economic metrics but pointed out recent signs of stability, notwithstanding the adverse effect of the current geopolitical climate on Suez Canal revenues. He expressed optimism that a resolution to the Gaza conflict and an ensuing ceasefire would restore stability in global markets, potentially returning Suez Canal revenues to normal levels by April.
In conclusion, Medbouly asserted that such developments would significantly enhance Egypt’s economy and reinforce its financial resources.
The recent announcement from Prime Minister Mostafa Medbouly underscores Egypt’s economic reforms, marked by a positive PMI and increased net foreign assets. With enhancements in foreign exchange reserves and a structured government plan to stabilize revenues and currency availability, the nation appears positioned for continued growth. Furthermore, a potential resolution to geopolitical tensions may further bolster the economic landscape, particularly in relation to revenue from the Suez Canal.
Original Source: www.dailynewsegypt.com
