Egypt’s non-oil business activity slowdown stretches to one year

Business activity in Egypt shrank for the 12th consecutive month in September, with output declining the most in five months and a weakening currency pushing up prices, a survey on Wednesday found.

The Emirates NBD Egypt Purchasing Managers’ Index (PMI) for the non-oil private sector stood at 46.3 points, down from August’s 47.0 points and well below the 50-point mark that separates growth from contraction.


"As well as marking a one-year downturn, the latest reading pointed to an accelerated contraction for the second straight month," said Markit, which compiled the data.

Egypt has struggled to revive its economy since a popular uprising in 2011 drove away investors and tourists, hitting inflows of foreign currency it needs to import raw materials and jumpstart its domestic industries.

The country reached a preliminary agreement with the International Monetary Fund in August for a three-year US$12 billion loan programme aimed at plugging its financing gap and stabilising its currency market.


Jean-Paul Pigat, senior economist at Emirates NBD said the weakening currency and a value-added tax adopted recently as part of economic reforms had combined to push up prices and weigh on growth.