S&P
The latest data from the PMI sub-components presented a mixed picture, with the output and new orders indices being the main factors keeping the overall index below the neutral mark.
Egypt’s PMI rose to 50.4 into growth territory in August, breaking an almost three-year streak in which it remained under 50.0 – which signals deterioration in economic conditions – since November 2020.
Registering just below the 50.0 threshold indicating growth, Egypt’s PMI slipped to 49.7 in July, making it the second-highest reading in nearly three years after declining from June’s 49.9
Egypt’s non-oil private sector is on the cusp of pulling out of contraction territory, according to the latest PMI report by S&P Global for June 2024
Compared to April’s 47.4, the country’s PMI for May showed a solid trajectory towards growth, barely under the 50 threshold for growth
The increased availability of foreign currency, coupled with hopes of exchange rate stability, lower prices, and improved material availability, boosted confidence among non-oil firms regarding the year-ahead outlook for activity
He added that the government’s aim is to restore confidence in the Egyptian economy by explaining the dimensions of the new economic trajectory of the Egyptian state, which is a catalyst for promising horizons.
These changes in the global agency's view of the Egyptian economy come after Cairo secured a $35 billion investment from the United Arab Emirates (UAE), adding to a string of international commitments and financing exceeding $50 billion.
“We think more clarity on exchange rate policy would benefit trade and economic growth and trigger an increase in remittance inflows,” S&P wrote in its report
According to S&P, the latest data displays a modest deterioration that was softer than the average seen over the past year (47.9). Egypt received its highest index rating of 49.2 in July, breaking its previous record from August 2021
From Fitch Solutions’ most optimistic view of Egypt’s growth to the lowered expectations of the IIF, a diverse range of forecasts paints a complex picture of the country’s potential growth in the coming year as the country faces numerous external geopolitical and economic shocks.
S&P highlighted the government’s decision to stop projects with significant FX costs or are at a completion rate of 50 percent or less, noting that it expected this to reduce related imports and support the country’s external position
"Changing the outlook from negative to stable reflects structural reforms that the Egyptian government undertook recently which contributed to achieving financial discipline,” explained Minister of Finance Mohamed Maait
In August, output declined modestly, driven by price pressures that constrained capacity
Since March 2022, the three banks released multiple types of high-yield CDs, ranging from annual yields of 18 percent to 25 percent
Standard & Poor's (S&P) kept Saturday Egypt's long and short-term foreign and local currency sovereign credit ratings at B/B with a stable outlook.
Moderna Inc will join the S&P 500 index as of the start of trading on July 21, replacing Alexion Pharmaceuticals, S&P Dow Jones Indices said in a statement on Thursday.
Spreadbetters expected European stocks to open flat to firmer, with Britain’s FTSE starting little changed, Germany’s DAX adding 0.2 percent and France’s CAC up 0.05 percent.
Investors in the region took some comfort from hopes that the trade talks between the U.S. and China expected this week will ease trade tensions.
S&P Global Ratings has recently announced that it lowered Turkey's sovereign rating to B+ from BB- while maintaining the outlook at stable.
