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Bloomberg Business: Signs Egypt's Economy May Be Recovering as PMI Rises

The Emirates NBD Purchasing Managers’ Index for the whole economy climbed for the third month in a row to 46.7 in February from 43.3 in January.
08.03.17 | Interesting article at Bloomberg Business

Economic activity for Egypt’s non-oil private sector accelerated the most since 2014, a sign that growth may be recovering after authorities abandoned currency controls and secured a $12 billion IMF loan deal.

The Emirates NBD Purchasing Managers’ Index for the whole economy climbed for the third month in a row to 46.7 in February from 43.3 in January. The New Orders sub-index rose to 44 from 39.2.

While readings below 50 indicate the economy is still in contraction, the magnitude of the gain signals an improvement in business confidence after policy makers floated the pound in November to ease a crippling dollar shortage. The New Export Orders sub-index was the highest level since Aug. 2015, data show.

“This suggests that the recent devaluation of the Egyptian pound is already having a positive impact on external demand, and this should continue to improve in the coming months,” Dubai-based Emirates NBD said. “Overall, there are signs of stabilization in the non-oil private sector.”