Egypt PMI rises in November, reversing 25 months of decline

Newspaper Title: www.thenational.ae

Newspaper Number:

Tuesday - 5 December 2017

Egypt's non-oil private sector economy turned the corner in November after more than two years of deterioration as a spate of economic reforms including the devaluation of the country's currency and a reduction in energy subsidies began to bear fruit, according to a PMI gauge.

The Emirates NBD Egypt Purchasing Managers' Index rose to 50.7 in November from 48.4 in October. A reading above 50 suggests that the non-oil economy is growing, while a reading below 50 suggests a contraction. The survey is sponsored by Emirates NBD, Dubai's biggest bank by assets, and produced by IHS Markit, a financial information services company.

"Egypt's PMI reading turned positive in November, signaling an expansion in the non-oil sector for the first time in two years," said Daniel Richards, Middle East and North Africa economist at Emirates NBD.

"This suggests that the wide-ranging economic reforms embarked upon in November 2016 as part of an IMF-sponsored program are beginning to bear fruit. Strong sentiment towards future prospects chimes with our view that the Egyptian economy will continue to strengthen over the coming quarters."