- Egypt’s net international reserves increased marginally to $35.24 billion in January 2024, surpassing both December 2023 and November 2023 levels.
- Despite the positive trend in reserves, the headline PMI for Egypt declined from 48.5 in December 2023 to 48.1 in January 2024, indicating deteriorating operating conditions amidst falling sales volumes and rising price pressures.
- This decline in the PMI suggests persistent economic challenges despite efforts to bolster reserves, highlighting the need to address underlying issues to ensure sustained growth and stability.
Egypt’s net international reserves saw a slight increase to $35.24 billion in January 2024, up from $35.21 billion in December 2023, according to data from the Central Bank of Egypt (CBE).
This figure also surpassed the $35.17 billion recorded at the end of November 2023.
However, amid these positive reserve figures, there was a notable decline in the headline seasonally adjusted Purchasing Managers’ Index (PMI) of the Arab Republic, dropping to 48.1 in January 2024 from 48.5 in December 2023.
This decline suggests worsening operating conditions at the start of 2024, with sales volumes continuing to decrease amidst rising price pressures.
This decline suggests that despite efforts to bolster reserves, challenges persist in the economy, particularly regarding sales volumes, which continue to go down amid mounting price pressures.
The combination of increased reserves and a declining PMI underscores the complex economic challenges facing Egypt. While efforts to strengthen reserves are commendable, it is essential to address underlying issues contributing to the downturn in business activity to ensure sustained economic growth and stability.
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