Egypt’s PMI retreated in March, signaling that the quick recovery in recent months was temporary. The index remains in the contraction territory for the fourth consecutive month, registering 48 in March, down from 49.3 in February 2021. The decline in PMI shows the cracks in the recovery’s momentum as it fell to its lowest reading since June 2020. The reading came despite growing efforts to accelerate the vaccination roll-out process to contain the potential implications of another wave. PMI readings in March also suggest that the sharp recovery since the great collapse in April 2020 was mainly driven by temporary pent-up demand, and it would be difficult to sustain given the risk of another pandemic wave, a slower rebound in labor-intensive services such as tourism, and global lockdown measures.
Mona Bedeir
Senior Economist
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