CAIRO: Egypt’s non-oil private sector continued to shrink in April despite a $35 billion investment deal signed with the UAE in February and an $8 billion International Monetary Fund agreement in March, a survey showed on Wednesday.
In April, Egypt’s S&P Global PMI slightly decreased to 47.4 from 47.6 in March, marking the 41st month of contraction.
“Business activity once again fell markedly as firms commented on difficult market conditions, with the decline leading to a renewed drop in employment,” S&P Global said.
The employment sub-index slipped to 49.7 in April from 50.8 in March.
Egypt signed an IMF agreement on March 6, receiving an initial $820 million payout in April, with another expected in June.
The IMF cited shocks to the Egyptian economy from the crisis in neighboring Gaza in granting financial support. As part of the deal, Egypt devalued its currency on March 6 and hiked interest rates by 600 basis points.
In Egypt, the non-oil sector has faced persistent challenges, as indicated by the PMI data. For the 41st consecutive month, the sector has experienced a contraction, reflecting ongoing economic struggles. Despite various efforts to stimulate growth, such as policy reforms and investment initiatives, the non-oil business landscape remains challenging.
In the future, policymakers and stakeholders must prioritize reforms to revitalize the non-oil sector, as indicated by Egypt non-oil PMI data. This metric serves as a barometer for economic health, highlighting areas needing attention.
Embracing technological advancements, promoting exports, and attracting foreign investment can bolster the non-oil economy. By implementing comprehensive measures, Egypt can overcome challenges and achieve sustainable growth in its non-oil industries.
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