Egypt sees fastest business growth over past three months

Business activity in Egypt expanded at its fastest rate in three months in December, a survey showed on Tuesday, with rising output and export demand bolstering a fragile economic recovery.

The HSBC Egypt Purchasing Managers Index (PMI) for thenon-oil private sector rose to 51.4 points in December, from 50.7 points the previous month, reaching its highest level since registering a near-record 52.4 points in September. Readings above 50 indicate an expansion in activity while those below 50 point to a contraction.

“Egypt is yet to regain momentum but a fifth consecutive score above 50.0 reinforces our view that the economy continues to stabilise,” Simon Williams, chief economist for the Middle East at HSBC, said. “We look for a pick-up in growth in 2015, albeit off a low base.”

Four years of political turmoil since the 2011 uprising that toppled autocrat Hosni Mubarak has battered Egypt’s economy and frightened off tourists and investors.