The PMI December reading this morning underscored that economic recovery in Egypt will be long and slog, with the main private sector activity indicator showing weakness. After registering three months of expansion since September 2020, the private sector PMI index ended the year 2020 in contraction territory. The headline PMI index fell to 48.2 in December vs. 50.9 in November as growth in both output and new orders declined at a moderate pace. The reading came at a time of growing pandemic-related uncertainties driven by the surge in infection rate and new targeted health restriction measures. Meanwhile, the long-lasting effect of the COVID-19 crisis on labor market dynamics is still material given the continued fall in the employment index.
Mona Bedeir
Senior Economist
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