The situation in Egypt’s non-oil private sector seems to be showing signs of improvement as of late. Following the currency devaluation in March and the $8 billion loan from the IMF, there appears to be greater price stability contributing to a slight uptick in economic activity.
The recent data from the S&P Global PMI indicates a rise to 49.6 in May from 47.4 in April, although still below the 50.0 threshold indicating contraction. While manufacturing and retail sectors continue to struggle, services and construction are showing growth. Optimism for future output is also on the rise, along with improvements in employment numbers.
For investors, the mixed results across various sectors in Egypt suggest a cautious outlook. The uneven recovery, with some sectors declining while others show signs of improvement, presents a complex picture. However, the increase in new orders and the push for increased staffing highlight potential opportunities in the market.
Overall, this shift towards stability in Egypt’s economy, despite being below the 50 point mark, reflects progress towards financial stability and reform. International support, like the IMF loan, will be crucial for sustained recovery, along with sound economic policies to drive investments and job growth. The journey towards economic stability continues, with hope on the horizon for Egypt’s private sector.
