Egypt's non-oil business sector yet to gain from IMF deal, PMI shows
An expanded IMF agreement and major investment by the UAE provided little relief to Egypt's non-oil private sector in March, a survey showed on Wednesday.
The S&P Global Purchasing Managers' Index (PMI) for Egypt inched up to 47.6 in March from 47.1 in February but remained below the 50.0 threshold that separates growth from contraction for a 40th straight month.
"Activity across the non-oil private sector declined sharply over the course of March, as weak order books and elevated inflationary pressures continued to hit business output and confidence," S&P Global said.
Egypt signed an agreement with the International Monetary Fund on March 6 to expand a December 2022 financing package to $8 billion from the original $3 billion, with an initial $820 million payout expected this week.
Egypt devalued its currency and hiked interest rates by 600 basis points to coincide with the IMF deal.
The expanded agreement was in response to shocks to the Egyptian economy from the crisis in neighbouring Gaza and followed a $35 billion investment deal with Emirati sovereign fund ADQ.