Egypt’s economic reforms are showing positive results as the Purchasing Managers’ Index (PMI) has exceeded 50 points for the second consecutive month, Prime Minister Mostafa Medbouly said. The index’s performance indicates a positive outlook for economic growth, he said.
Speaking at a press conference at the Cabinet headquarters on Wednesday, Medbouly highlighted the Central Bank of Egypt’s report of an approximate $8.7bn increase in net foreign assets (NFA) in January 2025. This is a substantial shift from a $29bn deficit recorded a year earlier, he said.
The Prime Minister noted the total increase in NFA amounts to around $37bn, with January’s increase accounting for approximately 60% of this total. He also stated that foreign exchange reserves have risen to $47.4bn, reflecting economic stability and the government’s ability to meet market needs, even with increased demand for goods and foreign currency ahead of Ramadan.
“The government is working to balance revenues and the availability of foreign currency, ensuring continued improvement in economic indicators,” Medbouly said.
He affirmed that the government is adhering to a clear plan aimed at increasing state revenues in foreign currency while rationalising its use, without affecting market activity or economic growth. Medbouly also emphasised support for the private sector and the government’s commitment to avoiding restrictions that would hinder its growth.
Medbouly acknowledged fluctuations in economic indicators, but noted that the past few weeks have shown a degree of equilibrium, despite the significant impact on Suez Canal revenues due to the current geopolitical situation.
Medbouly explained that if a resolution is reached for the Gaza crisis and a ceasefire is implemented, leading to the return of stability in global markets, Suez Canal revenues are expected to gradually return to normal levels starting in April. “This would contribute to strengthening the Egyptian economy and stabilising financial resources,” he said.
