Egypt’s Prime Minister Mostafa Medbouly announced that the Purchasing Managers’ Index (PMI) has exceeded 50 for two consecutive months, indicating economic growth. He highlighted an $8.7 billion increase in net foreign assets in January 2025 and a rise in foreign exchange reserves to $47.4 billion, affirming the government’s strategies to enhance economic stability and support the private sector.
Egypt’s Prime Minister Mostafa Medbouly announced that the Purchasing Managers’ Index (PMI) has surpassed 50 points for the second month, indicating economic growth. This is a positive sign of the success of Egypt’s economic reforms. The Prime Minister made these remarks during a recent press conference at the Cabinet headquarters.
Medbouly referred to the Central Bank of Egypt’s report showing an increase of approximately $8.7 billion in net foreign assets (NFA) in January 2025, a significant recovery from a $29 billion deficit reported a year prior. Overall, the NFA has increased to around $37 billion, with January’s increase representing around 60% of this total.
The Prime Minister reported that foreign exchange reserves have risen to $47.4 billion, which evidences economic stability and the government’s capability to meet market demands, especially with heightened demand for goods and currency leading up to Ramadan. He stated, “The government is working to balance revenues and the availability of foreign currency, ensuring continued improvement in economic indicators.”
Medbouly mentioned the government’s commitment to a structured plan aimed at boosting state revenues in foreign currency while managing its usage appropriately, ensuring that market activity and economic growth remain unaffected. He also stressed the importance of supporting the private sector and maintaining policies that encourage its growth.
Despite certain fluctuations in economic indicators, Medbouly noted recent stability. He addressed the impact of the geopolitical situation on revenues from the Suez Canal, explaining that resolution of the Gaza crisis could improve market conditions. He predicted that, should stability return, 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,” he added.
The recent improvement in Egypt’s PMI and foreign asset levels indicates that economic reforms are yielding positive results. Prime Minister Medbouly’s insights reflect the government’s focused plans to enhance foreign currency revenues while supporting economic activities. The anticipated stabilization of markets following geopolitical resolutions may enhance Egypt’s economic outlook further, particularly through Suez Canal revenues.
Original Source: www.zawya.com
