The PMI January reading released this morning accentuate the disrupted momentum still facing the private sector in Egypt as downwards risks dominate the scene. The private sector PMI index began the year 2021 in the contraction territory and for the second consecutive month. However, the contraction in activity slowed down as the headline PMI index rose to 48.7 in January 2021, up from 48.2 in December 2020. The reading came at a time of growing pandemic-related uncertainties driven by a slower-than-expected pace of the vaccination roll-out process, new global targeted lockdown measures, and growing news about a new mutant variant of the virus.
Mona Bedeir
Senior Economist
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