Egypt/ PMI July
The relaxing of health-related measures, ongoing normalization of economic activity, and government initiatives to stimulate consumption created the trajectory to further rebound in July. The headline PMI index rose to 49.6, the closest level to expansion territory since August 2019. The expansion in output and new sub-indices, for the first time in a year, gained their impetus from the resumption of international flights, reopening of hospitality activity, and government initiatives to boost consumption for domestically-produced goods. As most of the restrictions, except social distancing, were phased out in July, consumption looks to be approaching to its pre-COVID-19 levels, unless weak labor market conditions continue to take their toll on pent-up consumption.
Mona Bedeir
Senior Economist
Tel.: +202 3300 5722