CAIRO - 29 September 2024: The Egyptian Center for Economic Studies (ECES) revealed a significant decline in the Business Performance Index during the second quarter of 2024, with the index dropping by five points from the neutral level compared to the first quarter of the same year.
The report, released on Sunday, showed that the challenges facing companies, particularly inflation and rising energy costs, were among the main obstacles to economic performance, in addition to ongoing import problems and disruptions in navigation due to geopolitical tensions.
The report indicated that the performance of large companies declined by 12 points compared to the first quarter, while small and medium-sized enterprises continued to deteriorate during the same period.
At the sector level, most sectors experienced a decline in performance, except for the telecommunications sector, which recorded a neutral value.
Despite the overall index decline, companies expect performance to stabilize during the third quarter (July – September 2024), with a slight improvement in some indicators.
However, input costs are expected to continue rising due to anticipated increases in shipping and energy prices.
On the other hand, the report pointed out that addressing inflation remains a top priority for the business community, followed by the need to reform the tax system and ensure a clear economic vision to achieve sustainable growth."
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