Egyptian Private Sector Starts 2025 with Best Performance in Four Years
Egypt's non-oil private sector recorded positive performance at the beginning of 2025, with the Purchasing Managers' Index (PMI) rising to 50 points in January, its highest level since November 2020. This improvement was driven by increased sales and lower production costs, contributing to the lowest inflation rate in four and a half years.
Market Conditions Improve Amid Regional Stability
A report by "S&P Global" indicated that improved local economic conditions have boosted market confidence, with a potential contribution from the ceasefire agreement between Israel and Hamas. However, long-term expectations remain uncertain, as businesses have shown cautious future activity projections.
Encouraging Inflation Indicators
Official consumer price index data showed inflation at its lowest level in two years, with expectations for further decline in the coming months. Companies also faced reduced pressure to increase prices, reflecting an improved business environment. Meanwhile, the construction sector recorded a drop in procurement costs, while some firms experienced higher input costs due to the strong US dollar.
Cautious Outlook Despite Improvement
While these indicators suggest economic recovery, business expectations for future activity remain historically low. Long-term economic stability and external market conditions will be crucial in determining whether this momentum can be sustained.
What do you think are the key factors that will shape Egypt’s economic outlook in 2025? Share your thoughts in the comments!
Manager - GRC Internal Audit and Business Process Improvement @ KPMG EG | CIA-Certified Internal Audit Leader| Risk Advisory & Compliance| Fraud Protection | Enhancing Organizational Integrity & Efficiency
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3 周The positive momentum in Egypt’s private sector is a promising indicator, especially for companies focusing on customer experience and operational efficiency. Economic stability presents an opportunity for businesses to invest in service excellence, talent development, and digital transformation—key factors for sustaining long-term growth. Some of the main factors that will shape Egypt’s economic outlook in 2025 include: Economic and political stability: Continued improvements in the business environment will enhance investor confidence. Digital transformation: Increased reliance on technology will boost productivity and service efficiency. Human capital development: Investment in training and professional development will have a direct impact on economic growth. Monetary and fiscal policies: Controlling inflation and stabilizing exchange rates will be crucial. In your opinion, which sectors will benefit the most from this improvement?