Monday Minutes: Economic Snapshot

Monday Minutes: Economic Snapshot

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

September 1 to September 7 Coverage

The non-oil private sector economy recorded 49.4 in IHS Markit Egypt Purchasing Managers’ Index (PMI) in August, down fractionally from 49.6 in July. 

Moody’s reflected Egypt’s credit rating at B2 and stated that its diversified economy, large domestic funding base, and projected foreign exchange reserves are enough to cover maturing external liabilities over the next three years.

The Ministry of Planning and Economic Development (MPED) allocated EGP 45.3 billion towards the electricity sector in the FY 2020/21 budget; representing 6.1% of total investments.

The Sovereign Wealth Fund of Egypt (SFE) and the Ministry of Housing, Utilities, and Urban Communities will invest EGP 30 billion out of the government’s EGP 134.2 billion plan towards constructing desalination plants across the country, MPED announced.

Egypt’s economy grew by 3.5% in FY 2019/20 due to COVID-19, previous to the pandemic, the state aimed to record 5.8% for FY 2020/21, according to the Cabinet.

The state achieved a 26% growth in public investments in fiscal year (FY) 2019/20, and targets 55% for FY 2020/21, according to the Cabinet.

The Cabinet announced that during the first nine months in FY 2019/20, the trade deficit decreased by 5.4% as imports decreased by 3.3% and exports increased by 0.5%.

The inflation rate slowed down recording 4.6% in July, according to the Cabinet.

The Cabinet stated that the National Bank of Egypt (NBE) signed a EUR 800 million agreement with the European Investment Bank (EIB) to fund Small and medium-sized enterprises (SMEs) that have been impacted by COVID-19.

The Ministry of Finance (MoF) signed 35 agreements with several exporters to disburse EGP 2 billion in subsidy arrears, noting that in October, the ministry will roll out EGP 400 million in export subsidies.

The Ministry of Trade and Industry and MoF allocated EGP 7 billion to support exports in FY 2020/21 budget, adding that they have disbursed EGP 1.1 billion in July and August.


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