Monday Minutes: Economic Snapshot

Monday, 8th June 2020
Monday Minutes: Economic Snapshot

A summary of last week’s major macroeconomic updates and indicators brought to you on one page for your convenience.

June 2 to June 8 Coverage:

IMF to grant Egypt a one-year financing package of $5.2 billion to support the country to maintain macroeconomic stability amid the COVID-19 crisis.

Net foreign reserves reached about $36 billion at the end of May, according to CBE.

Egypt’s Sovereign Fund ranked 43 of 93 on the sovereign wealth funds’ global ranking in terms of asset size, according to the Sovereign Wealth Fund Institute (SWFI).

IHS Markit stated that the Purchasing Managers Index (PMI) rose by 11 points from 29.7 points to 40.7 points in May, recording an increased rate of 37% compared to April 2019.

MPED stated that they have allocated EGP 447.3 billion for 691 green projects in FY 2020/21 plan, which constitutes 14% of total public investments. 

MPED indicated that the transportation sector’s green projects in FY 2020/21 account for 50% of the total projects’ costs, followed by the housing sector projects accounting for 30%, and the electricity sector projects with 9%.

FY 2020/21 green plan includes 23 projects in Cairo amounting to EGP 9.7 billion, followed by Giza with 36 projects with credits of EGP 8.7 billion and Damietta with 16 projects amounting to about EGP 1.6 billion, MPED reported.

Fitch Solutions expects that the Egyptian economy will remain strong during the next five years, and Focus Economics expects growth in Egypt’s economy by 2.5% during FY 2019/20 and by 3.7% during FY 2020/21, according to MPED.

The headline inflation rate recorded 5.9% in April, compared to 13% in April 2019, 13.1% in April 2018, 31.5% in April 2017, and 10.3% in 2016. Meanwhile, the core inflation rate recorded 2.5% in April, compared to 8.1% in April 2019, 11.6% in April 2018, 32.1% in April 2017, and 9.5% in 2016, according to MPED.

Emaar Misr plans to invest EGP 40 billion to build a new investment zone in the Greater Cairo area for commercial, residential, hotel, and service activities, according to the Cabinet.

 

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