The February PMI came in line with our expectation, posting another contraction reading despite a slight improvement m/m. The rebound of Egypt's private sector is still constrained by weak demand as both output and new orders declined for the third consecutive month, yet at a slower pace. Thus, the private sector PMI index remains in the contraction territory, registering 49.3 in February up from 48.7 in January 2021. The reading came amid growing efforts to accelerate the vaccination roll-out process, globally and domestically; continued recovery in global trade; and soaring global commodity prices driven by growing optimism over the global economic recovery. One of the positive implications of these developments translated into a strong upturn in export contracts and a slight improvement in tourism activity.
Mona Bedeir
Senior Economist
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