05 Jun 2022

Egypt’s business activity remained in contractionary territory according to the latest S&P Global PMI survey. Egypt’s PMI score for May 2022 was 47.0, up marginally from 46.9 in April 2022, but still below the 50.0 neutral mark. High inflation that is accelerating led to both a steep drop in demand as well as an increase in business expenses. The strengthening U.S. Dollar caused even more damage, adding to the already exceptionally high commodities prices due to the Russia-Ukraine conflict and the persistent Covid pandemic’s negative effects. As a result of these conditions, the outlook of firms for future business activity declined. Despite that, businesses did remain positive that circumstances will become brighter over the coming twelve months and that output will increase. (Sources: S&P Global (English) (Arabic), Reuters (English), Business Today Egypt (English), Arab News (English), al-Maal, Zawya, al-Borsa, Economy Plus Me, Masrawy, al-Sharq Business)